Pesek: Krugman Take on $12 Trillion Question Rings True
By William Pesek
"... Investors trying to predict the next debt crisis after Europe’s tend to look to Washington or Beijing. What about Tokyo? Those betting against Japanese bonds haven’t made much on the trade. Yet consider one inauspicious milestone reached this year.
On Jan. 9, youngsters celebrated Coming of Age Day, donning kimonos, visiting temples and partying the night away. This year, only 1.2 million Japanese turn 20, half as many as in 1970. A shrinking population complicates efforts to repay a $12 trillion debt, more than double the size of the economy...."
Comment: There's no money left for Japan to finance other people's deficits when it runs an own trade deficit. This means that interest rise will be on the rise not just in Japan but also in the US, Ben's prayers not withstanding.