Not like Fukushima isn’t a large enough problem for Japan ( and the rest of the world for that matter ) but unfortunately……..it’s only a “near term concern”.
Originally triggered by a “massive baby boom” post World War II, the demographics of Japan have evolved into something pretty unusual. The combination of long life expectancy and extremely low birth rate (one of the lowest of all developed nations ) has resulted in a rapidly aging population, such that currently “one in every four citizens” is over the age of 65.
According to Japan’s National Institute of Population and Social Security Research, it will be “one in three people” in Japan to be aged above 65 by the year 2030.
There will be more people “over the age of 60” than “under the age of 14” by 2020, with more diapers being sold for adults than for babies.
Japan’s rapidly aging population and low investment returns are driving a decline in savings and wealth ( as retirees now “spend” their savings as opposed to grow them ) dramatically reducing the amount of capital available to fuel the economy.
Since 1981 Japan has produced enough savings to finance its domestic investment needs “and” still export savings as well. But as Japan grows older and it’s savings pool shrinks they will surely become a “net borrower” – meaning…..yet another “purchaser of U.S Debt” will likely stop buying and put even “more pressure” on the economic situation in the U.S.
“You ain’t investing in no U.S Treasury Bonds when your primary concern is maintaining a reasonable quality of life in your later years.”
Is it any wonder we see Japan taking such drastic steps ( via currency debasement / QE etc..) to promote growth and bolster their economy?
A work force that is generally “drying up” ……………and taking their life savings along with them.