Land Of The Rising Debt-To-GDP Ratio

Feb. 23, 2012 5:18 PM ETEWJ, EWV, EZJ, JGBD, JGBS-OLD18 Comments

By Paul Azeff and Kory Bobrow

The war situation has developed not necessarily to Japan's advantage

-Japanese Emperor Hirohito, after the atomic bombing of Hiroshima and Nagasaki, announcing Japan's surrender to the allies

Japan is a bug searching for a windshield

- John Mauldin

What did Madoff and Stanford teach us? They taught us that you can keep a ridiculous Ponzi scheme going for a very long time as long as you have one ingredient: more people entering the scheme than exiting the scheme. In Japan last year, the working age population peaked. From now on, they're in an inexorable secular decline. So the rubber is meeting the road there today.

-Kyle Bass of Hayman Capital

We believe the debts of the following nations, among others, are not sustainable in the current economic environment: Greece, Italy, Japan, Ireland, Iceland, Japan, Spain, Belgium, Japan, Portugal, France, and, have we mentioned Japan?

- Kyle Bass

All things flow, nothing abides. You cannot step into the same river twice, for the waters are continually flowing on. Nothing is permanent except change.

- Heraclitus

While it seems impossible to pick up a newspaper or search a news site without hearing about yet another Greek bailout/default story, we're here to tell you that it's all a sideshow, and while the main act is just about to come on, only a few forward-thinking types seem to be paying any attention. If you are searching for something to worry about, Greece should be pretty low down on your list, especially when you compare it with Japan. In comparison with Japan, Greece looks like a prudent steward of capital! Everyone is worried to death about Greece's 145% debt-to-GDP ratio? Well, Japan's is over 230%, and quickly rising! Here's another big difference: Japan is the third-largest economy in the world, and its GDP is roughly 40% larger than the GDP of all the PIIGS countries combined! Each

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