Breaking News: Japan May Default says Japanese Prime Minister

Business Insider

When he was Japan’s finance minister, Naoto Kan advocated loose monetary policy to end two decades of deflation.

But since his sudden promotion to prime minister, Kan has been crying out about public debt levels. Today, he even used the signal word for austerity: Greece.

“Our country’s outstanding public debt is huge. Our public finances have become the worst of any developed country. We cannot sustain public finance that overly relies on issuing bonds. As we can see from the eurozone confusion that started in Greece, there is a risk of default if growing public debt is neglected and trust lost in the bond market.

No one knows if he can pull off the mythical trick of reducing government spending while stimulating private sector spending. Kan may be overplaying the similarity Greece to get people behind fiscal reform, a Credit Suisse Japan analyst tells The Guardian.

We are the next Greece has been the signal phrase for fiscal reform in California, Hungary, and America.

About Luis Miranda
The Real Agenda is an independent publication. It does not take money from Corporations, Foundations or Non-Governmental Organizations. It provides news reports in three languages: English, Spanish and Portuguese to reach a larger group of readers. Our news are not guided by any ideological, political or religious interest, which allows us to keep our integrity towards the readers.

Comments are closed.

%d bloggers like this: