This is a question being asked by investors. The deep recession has transferred private debt to public debt. Government are heavily in debt. I discussed Japanese situations in my previous blog. If interest rate move up 100 bps, Japan is going to be in deep trouble. Japan, however, won't be the next problem country. My guess the next one would be Greece. Its debt has reached 100% GDP and it can not print its own money. EU and IMF may come to its rescue but it will pay a heavy price.
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