Japan is drifting helplessly towards a dramatic fiscal crisis. For 20 years the world’s second-largest economy has been able to borrow cheaply from a captive bond market, feeding its addiction to Keynesian deficit spending – and allowing it to push public debt beyond the point of no return.
via telegraph.co.uk
I’m not sure if we should be worrying about Japan instead of America, but maybe Japan in addition to America.
One out of four homeowners is now under water, owing more on their homes than the homes are worth. [...] The biggest single factor behind the housing crisis is rising unemployment [...] one out of every three Americans has either lost their job or lives in a household with someone who has lost a job.
I think this is something to pay attention to. If anyone has hopes that the recession is on the upswing – be wary.
The prospect of the United States defaulting on its debt is not just likely. It’s inevitable, and imminent.
via seekingalpha.com
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