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Japan admits "We are worse than Greece"

While the world was fixated on the European Union’s bailout of bankrupt Greece, across the ocean on the other side of the world is an even bigger fiscal disaster.
Tyler Durden of ZeroHedge writes on March 13, 2012, that according to a Bloomberg report, a Japanese Ministry of Finance official said that “Japan is fiscally worse than Greece.”
At a recent conference in Tokyo, Yasushi Kinoshita disclosed Japan’s 2011 fiscal deficit was up to 10% of the country’s GDP, and its debt-to-GDP ratio has soared to over 230%.
Durden observes that since a large amount of Japanese government bonds are held domestically, this means the Japanese financial system is much more vulnerable to fiscal shocks – especially oil and other energy pricesthan Europe.
It wasn’t that long ago — in the 1980s — when Japan was touted as the East Asian Miracle that would surpass the United States to become Number One. But just when some Japanese were crowing that Japan could “say no” to America and would no longer be content with being America’s kobun, its economic bubble burst, casting the country into a recession that spanned the 1990s, from which it is still struggling to emerge.
As the world’s 3rd largest economy (by nominal GDP), 4th largest exporter and 4th largest importer, Japan’s worse-than-Greece fiscal woes are sure to have global repercussions.
~Eowyn

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