Debt-Laden Japan A Global Danger

When the financial world tries to anticipate the next meltdown, all eyes turn to Europe. But some analysts are looking to Japan instead. “A global fiasco is brewing in Japan, predicted Societe Generale analyst Dylan Grice in a recent report. Japan has had no fewer than nine finance ministers in the last 4½ years — one of whom apparently committed suicide after resigning. It’s savings rate is quickly approaching zero. Meanwhile, it has the oldest population in the world, with basically no immigration. When people retire, what do they do? They start to withdraw money from the banking system. You begin to see the problem.