Japan is about to COLLAPSE?

Japan is about to COLLAPSE?

So, Japan is about to collapse. Could this impact the US as well? The Japanese prime minister just warned that their financial conditions are worse than Greece’s. Japan’s economy shrank at a larger pace than expected with Trump’s tariffs. Its GDP went down by 0.7% in March, much lower than the 0.2% expected by analysts. On top of that, Japan has one of the world’s largest debt to GDP ratios of 249%, which is twice as much as the US with 124%. On the bright side, 86% of its debt is owed domestically, so it’s less dangerous. They also have an aging population with roughly 30% of their citizens above 65 years old. But the Greek situation was actually much worse. They had a debt to GDP ratio peaking at 185%, but their GDP shrank by 25% over the course of 5 years. This pushed Greece to implement multiple austerity packages, sell government assets, and get bailed out by the EU. In 2015, Greece closed all banks for 3 weeks, imposed a withdrawal limit of €60 per day, and blocked foreign transfers. Japan is not there yet and likely won’t be with the control they have on their debt. However, it’s more likely that the Japanese PM uses the Greek situation as leverage. He wants to block calls for tax cuts or more stimulus pushed by the opposition by invoking the ultimate scare story. It might not have been the best move since the 40-year yield surged by 20 basis points after the comment.