Date: Nov 4, 2012 2:11 PM
Author: israeliteknight
Subject: Re: Speachless In New York (or, another OMG moment)

"Here are the facts: Roughly 130 million in Japan each loaning that much is on the order of 10 trillion dollars. Roughly 10 trillion is roughly twice as large as their entire nominal GDP, which is roughly only roughly 5 trillion."


The Census Bureau survey which shows that each of 101 million American households has an average salary of $37,000 proves that the US over-represents US GDP by more than four fold:

$37,000 x 101 million = $3.7 trillion

Official US GDP = $16.7 trillion

Difference = $13 trillion

Can you tell me, Paul, where this extra $13 trillion comes from? No.

Conversely, your estimate for Japan's GDP underestimates their GDP by more than twice.

<<<(2) Income and Expenditure for Workers' Households
The average monthly income per household stood at 1,164,785 yen, down 2.2% in
nominal and 2.8% in real terms from the previous year.
Living expenditure was 444,211 yen, up 0.5% in nominal but down 0.1% in real
terms from the previous year.>>>

This was originally posted at the official Japanese government web site at:

http://www.stat.go.jp/english/index.htm

It has now been removed, but it can now be found at:

http://web.archive.org/web/19990223223925/http://www.stat.go.jp/156.htm


I deal with Yen all the time. I pay my Japanese engineers in Yen. So I know that this above figure is low, but it is still, to this day, more than $14,451 PER MONTH.

This is not a mistake. The Japanese government does exactly the opposite of what the US government does when dealing with economics. To say that a country where the AVERAGE monthly income for workers' households is $14,451, where there are 64 million workers' households, "is roughly only roughly 5 trillion", is ludicrous to the max:

$14,451 x 12 x 64 million = $11.1 TRILLION
Your estimate = $5 trillion

Difference = $6.1 trillion

Corporate households in Japan, which aren't even included in the above simple estimate, make about ten times as much.