Japan Cruising Toward Debt Crisis

I knew Japan was deep in debt but these numbers are truly scary. The IMF expects Japan's gross public debt to reach 218pc of gross domestic product (GDP) this year, 227pc next year, and 246pc by 2014. This has been manageable so far only because Japanese savers have been willing – or coerced – into lending for almost nothing. The yield on 10-year government bonds has been around 1.30pc this year, though they jumped to 1.42pc last week. That means for every 1 Yen of GDP you have more then 2 Yen of Debt. That is simply unsustainable and if there is a debt crunch in Japan it will be strait-up devastating.