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Rising Debt a Threat to Japanese Economy

New York Times Original article ›

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On the negative side Japan has public debt that is about twice the size if its $5 trillion economy. In the USA government debt is up to 98% of GDP.On the positive side only 10% of it is owed to foreigners compared to 46% of it for the USA. Japan is also rich in personal savings and assets. Over half of government bonds are held by the public sector and the rest are with long term investors like banks and pension funds and insurance companies. So any sudden sell off of bonds is very unlikely.

Japan- Debt and the Deficit

10/21/2009

Japan's public debt is reaching twice the size of its $5 trillion economy.

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