free web tracker soliloquies: another questioning


so・lil・o・quy/- n. [C,U] a speech in a play in which a character talks to himself or herself, so that the audience know the character's thoughts.

Wednesday, June 25, 2008

another questioning

Why are government bureaucrats a popular job for top students in japan? To be honest, it's stability and name value are the only points superior to other choices of employment.

Theoretically, governments don't go bankrupt because of their ability to print money and collect taxes. Of course, if governments take these measures to wipe their debt as a last resort, it will cause severe consequences to its economy. Most noticable of these effects is a high rate of inflation that was seen in Russia and in Argentina during their crises. Nevertheless, this theoretical stability is the reasoning for high rating government bonds can get.

Unfortunately, this does not effectively explain the popularity I mentioned in the question. Japan's got the highest GDP to government bond ratio even with the ridiculously low level of interest rate. There's no leeway left for this interest rate to go down, so the only way it can go is...UP, further increasing the difficulty of repayment. In case of a financial collapse of a government, the first ones down would be it's employees i.e. Bureaucrats, so if we look at the current financial situation our government has gotten itself into, stability is not backing up the cause. In other words, bureaucrats are working for the world's most underperforming company that generates about 30 trillion yen of debt each year.

To be continued...


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