Business Week (February 26)
2010/ 02/ 26 by jd in Global News
“Japan faces biggest crisis risk in G-10” reads the headline which is based on an assertion by Goldman Sachs’ chief economist Jim O’Neil. O’Neil is famous for coining the term BRICs (Brazil, Russia, India and China) and predicting these countries would rank among the globe’s most dominant economies by 2050. O’Neil provides several reasons for his latest prediction that Japan could experience a major economic crisis. Japan’s domestic savings have dropped, with savings rates falling below those of the U.S. Meanwhile, public debt has surged and, on top of everything, the yen is overvalued.
