Japan at 50 in 2025

Japan is currently the second most aged country in the world (to Monaco) at median age 42.3 (Australia is median age 36.3 and ranked 34th). In twenty years time the median age of Japan will be 50. A history of Japan being a net exporter of savings since the 1980?s will change to Japan withdrawing its US$715 billion currently invested in US treasury bonds (40% of all holdings there) as the country ages.

So who will replace these funds loaned to the world by Japan? It?s a time like this that will test the workings of the globalised world economy. Western country governments will need to respond to the financing demands for maintenance of standards of living for retirees without devastating inflation and currency devaluation. After World War 2, rationing was accepted as a means of coping with scarce resources in a time of rapid household formation and baby boom. Recent water shortages in Australia have shown some capacity of population to cope with modest rationing in less traumatic times.

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