Challenges to Japanese Economy: stagflation, 30 years recession, high public debt

Every generation needs a revolution - an entrepreneurial revolution

ADB papers on Japan's 30 year recession/stagflation

Japan was poised as the 2nd biggest economy in the world in the 80s to compete with USA in word economic supremacy.  That did not happen

After the real estate bubble burst in 1980, Japan's economy was never the same:

1.  Inflation was high

2.  GDP growth stagnated

3.  Debt as % of GDP was at 260% (one of the highest in the world)

A slight mistake among theiri economic bosses would turn their currency into "Perang Hapon"as we knew the Japanese currency in WW2. 

Couple this with demise of big companies like Sharp, Toshiba, and weakening of car companies Nissan and Mitsubishi

Tis crumbled my admiration for Japan's management system and their supposed superiority in manufacturing and business.  This post discovered their vulnerability.   Beneath their glitzy city and tourist spot, all is not well for Japanese economy

As of December 2022, the Japanese public debt is estimated to be approximately 9.8 trillion US Dollars (1.29 quadrillion yen), or 263% of GDP, and is the highest of any developed nation. 43.3% of this debt is held by the Bank of Japan.  

(It has not beaten US whose public debt stands at $31 trillion)

From Researchgate: debt as % of GDP of nations

Our presence could be a catalyst in the market

Every generation needs a revolution - an entrepreneurial revolution

We were invited to put a business in a major highly populated  city  in an island province, and  we together with the family went there on a BIB2 trip.  We inspected the site.    We concreted the plan to go into the  business -  we lined up the  financing and the strategy to acquire the  land needed for the project.  

However  we soon learned that a competitor asked for the  papers and requested for the  meeting with the  seller.   We bidded low having seen a creek at the middle of the land.

The competitor bought the land at a much higher price including the creek   The 5 year nego before did not move.   And now

Did our presence catalyzed the  closing of the  dormant deal?   

Were we glad that we did not succeed in getting a CATV franchise; is the industry doomed?

Every generation needs a revolution - an entrepreneurial revolution

We were unable to get a CATV franchise in our town   Despite a feverish campaign to get the local council approve the franchise and despite that some members of the council were friends and relatives we did not get the franchise.   They gave it to somebody from another town, who promptly sold the franchise to another party. Some of the members, somebody who bore our middle name, being a lineman at a telco, removed some of the cables.   We incurred a half million loss from the misadventure.      From what I know there was no working CATV in our town.   

Now a telco is bundling their offering with a cable TV package. They call this OTT - over the top services  Woe unto somebody who has a cable TV franchise.    The news article predicited the end of the cable TV industry as we know it

Biz Buzz learned that Uy is now in the final stages of designing a new service offering that will bundle most, if not all, of the channels currently available on cable TV with the internet service of every single Converge subscriber.

More importantly, the service will come at no additional fee for the subscriber as the cost of carrying all those channels will be tucked into the existing subscription fee.

Uy recently made waves by giving subscribers free speed upgrades, with some seeing their internet speeds rise by a factor of ten for the same price. The addition of OTT services that allow one to watch their favorite channels for free— instead of subscribing to cable TV services, whether wired or delivered via satellite dish— will make Converge an even more compelling service.

Read more: https://business.inquirer.net/394338/biz-buzz-cable-tv-industry-killer#ixzz7xo28DUuI
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 Their losses could be huge     The immediate effect would be loss of new subscribers, and then non renewal of subscription  

Were we glad we are not into this business anymore.