I don't want to bore you with the numbers, but Japan's public debt situation is uglier than Greece's and Japan is a lot more important to the world economy than Greece (sorry). Demographics advance like a glacier and their influence on an economy are just as unstoppable. Combining deteriorating demographics (Japan), deteriorating external accounts and an unsustainably high public debt load, and you get the preconditions for more...well, problems.
Let's keep our eyes on the East, Japan and China in particular, for clues to the next phase of the financial crisis. You can't continue to borrow when your debt carrying capacity no longer exists.
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