Japan's New Crisis
 

the 9.0 earthquake and the resulting tsunami and nuclear crises following it are obviously enormous problems Japan’s government will have to deal with. But these are only worsened by Japan’s growing fiscal crisis.  Japan’s budget calls for spending over $860 billion, while revenues are only $500 billion. This brings their total debt to nearly 200% of GDP. Here in the US, our huge debt is now approaching 100% of our GDP, and this is creating monumental problems for our children and grandchildren. Japan’s situation is far, far worse. As the WSJ said (1/6/11), “Japan is foundering on promises made by past generations of politicians that are coming due in a rapidly aging society. These include unfunded pensions and medical care for the elderly.”  Sound similar to our national problems with Social Security, Medicare & Medicaid, and our NY fiscal crisis of underfunded pensions and totally unfunded healthcare promises made to public employee retirees? But now, Japan must also deal with its environmental catastrophes as well.