Bernanke, Geithner and the Japanese Solution
A curious financial situation has developed in Japan. Largely overlooked in the American press, Japan now has built up a staggering national debt that is approaching 300% of their GDP. This debt exists at the same time that there is tremendous alarm in the global media over Greece’s debt, that is only about 130% of GDP. (And lest we feel smug about those spend thrift Greeks, our own debt is now more than 100% of our GDP, and unlike Japan, we have a trade deficit rather than a trade surplus.) Why has Japan’s monstrous debt been ignored by the press? …