Japan's national debt has soared to 235% of GDP, reaching 1,324 trillion yen, the highest among developed nations. In response, the Bank of Japan is selling off its extensive holdings of exchange-traded funds, valued at over 79 trillion yen, marking an unprecedented move by a major central bank. This action is causing significant turbulence in global financial markets.
The yield on Japan's 10-year government bonds has climbed above 1.6%, escalating the cost of debt servicing. Meanwhile, the U.S. is grappling with its own debt challenges, with national debt exceeding $37 trillion, or 120% of GDP. As confidence in paper currencies declines, investors are increasingly turning to alternatives like bitcoin and gold. Japan's fiscal situation highlights the risks of excessive borrowing for other developed economies.
Japan's Debt Hits 235% of GDP, Sparks Global Economic Concerns
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