10 Most Indebted Nations (Guess where we are?)

[Scion]

lets put the issue in perspective. Japan has the highest saving rate for any 1st world country, Koizomi didn't force the split up of Japan Post for fun you know. Anyway for Japan's case, the government is cash strapped but the conglomerates are flushed with cash. Even if the government is bankrupt, the economy wouldn't grind to a halt because there is ample equity circulating in the domestic economy.

 

 

i'm not sure how loyal are the Japanese companies...

with globalisation, the businesses can be shifted from regions to regions

 

if the govt goes bankrupt, bonds turn junks and their yields shoot up

it has to restructure its fiscal policy and cut budget, which means taxes go up, social benefits being cut

foreign investment will retreat, local companies shift their focus to other regions, SMEs collapse

unemployment rate goes up, people become unhappy... more unrest and protests

 

the impact can be huge (as seen in Greece now)