To provide more attractive debt options, the government will have to tolerate more interest liabilities. That means increased loaning to pay for this. This is a typical perpetual debt trap, a vicious cycle where borrowing to service an ever-growing interest repayment. The more you’re borrowing to pay debts today, the more interest and obligations you’ll have to face tomorrow. Japan may be a prodigal debt manager for now, but because the structure of its society will not change significantly and its economy is not productive enough, the only viable option is default. This scenario is what economist claim to be impossible. Unless Japan attempts a leap of fate to ensure … Continue reading Peter Pham