Saturday, June 12, 2010

Japan’s Prime Minister Warns That Debt Could Bring a Crisis Like That of Greece

First the Japanese thought debt was their friend.

Then they found out the truth!
TOKYO — Japan’s newly installed prime minister startled the nation on Friday by warning that it could face a financial crisis of Greek proportions if it does not tackle its colossal debt.

Stark words from the prime minister, Naoto Kan, followed by just hours the resignation of his banking minister and ally in the governing Democratic Party, Shizuka Kamei — an advocate of big spending. Mr. Kamei’s departure seemed to signal that the new government would focus on reducing Japan’s heavy government debt, called sovereign debt, by far the highest in the industrialized world, and cutting back on the wasteful public works projects.
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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of a social media management company.