TOKYO—The International Monetary Fund warned in a new report that market concerns over fiscal sustainability could trigger a "sudden spike" in Japanese government bond yields that could quickly render the nation's debt unsustainable as well as shake the global economy.No country has done more to "stimulate" it's economy and "invest" in its future than Japan. Aging, debt-ridden Japan. If you thought it was a bad idea to loan money to those wacky Italians, then it might be bad idea to loan it to those sober Japanese, too.
The fund's Japan Sustainability Report, released on Wednesday, was a sihttp://www.blogger.com/img/blank.gifgnal to Tokyo policy makers that the international community is already worried about fallouts from Japan's potential fiscal problems, after debt problems in some European economies evolved into a Continent-wide crisis.
Japan's public liabilities amount to roughly twice annual economic output—a ratio worse than that of any other industrialized economy, including turmoil-hit Spain and Italy.
Fortunately for the Japanese, their debt is almost entirely held within Japan. They're not in any trouble unless there's some kind of jump in the number of retirees who need to take their savings out of the government bond market to live on.