Japan doing a Greece?

Japan is at a risk of collapse under a huge mountain of debt, says the new Prime Minister Naoto Kan. He confirmed that “It is difficult to continue our financial policies by heavily relying on the issuance of government bonds.”

Details about possible financial changes have not been given, but the trend of increasing sales tax will prove to be a highly unpopular one. But Mr Kan claims that “it is unavoidable to launch a new tax system. Issuing bonds at the current rate will result in outstanding debts of over 200% of GPD in a few years.”