Friday, June 11, 2010

Japan Warns That Its Debt May Make it Next Greece

Japan's new Prime Minister issued a warning that his country could be the new Greece. He warned of "a financial mess like the one that has crippled Greece if it does not deal urgently with its swelling national debt"

That was the PM's first address to Parliament after taking office. According to the AP, he said that "Japan cannot continue to let government debt swell while state finances are under pressure from an aging and declining population".

"It is difficult to sustain a policy that relies too heavily on issuing debt. As we have seen with the financial confusion in the European community stemming from Greece, our finances could collapse if trust in national bonds is lost and growing national debt is left alone,"

As reported here several times before, Japan faces many significant problems besides its huge debt, among them, a population that will shrink and age in the next decades putting a end to any idea of economic growth.

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