The debt of the Japanese state is now at 200 percent of the gross national product. Growth the debt continues inexorably, while the economic output shrinks at record pace. The rating agency Moody's has lowered the credit in May 2009 of Japan by two steps (to Aa2). This means that the agency, the failure risk Japan regards as higher! Nevertheless, Japanese savers continue to buy Japanese government bonds. Nor, mind you. Should Japan get into a spin, that would be a disaster for the world economy, as well as the U.S., UK and many other countries are already on the brink of self-generated spiral of debt. Even Germany and the euro area do not stand very well.
The big question is, when is it dangerous. As long as the savers buy government bonds, is still all right. The excess capacity of the industries currently limit the risk of hyperinflation. These capacities are, however, degraded by the world's reluctance step by step. How long this process is still shrinking? A year? Three years? Seven years? Ten years?
short term, one should not panic, not so fast decreases the Titanic, on the other hand, one should remain vigilant because the debt is forever sauce can not go on.
recommended For more information: "The world economic crisis and debt crisis" by Tomasz Konicz on Heise.de
Chiemgauer 2007 
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