How is Japan able to economically sustain itself with a debt to GDP ratio of over 250%

Question

Whilst simultaneously having a rapidly declining birth rate, and relatively low levels of immigration, to maintain a homogeneous society, without imploding in on itself?

In: Economics

Answer 1

Those bonds are largely owned by people in Japan. So payments from the gov go to people in Japan. On net there’s no money lost to Japan’s economy as a whole.