SAN FRANCISCO (MarketWatch) -- Faced with the prospect of a 6 trillion yen ($66 billion) tax-revenue shortfall, Japan may be forced to bring its balance of new bond issues to 50 trillion yen for the first time ever, according to a report Tuesday. Newly appointed Finance Minister Hirohisa Fujii indicated the possibility for the fresh bond issues, the Nikkei business daily reported, quoting Fujii as saying tax revenue for fiscal 2009 is expected to fall well short of the original, 46.1 trillion estimate, and "could even be a little worse." Current bond issuances stand at 44 trillion yen, the report said. Plans for additional issuances are expected to be included in a bill for a second fiscal 2009 supplementary budget. A drop in tax revenue below 40 trillion yen would the first since fiscal 1985, according to the report. And the proposed issuance of new bonds in excess of tax revenue for fiscal 2009 would be the first since fiscal 1946, the report said. Fujii said that bond issuances for fiscal 2010 will be capped at 44 trillion yen, according to the Nikkei. http://www.marketwatch.com/story/japan-govt-reported-heading-for-record-debt-issue-2009-10-19
40 trillion yen. That sounds like the dollar in 10 years. The government will be saying the current shortfall is 20 trillion dollars, and projected 10 year deficits are 100 trillion. In my opinion, it gets ridiculous for accounting purposes to run into high numbers like this. I think the G20 will propose a 2 to 1 split on all currencies to re-value the world economy for accounting purposes. Satirical applause.