After quakes, waves and radiation, Japan could now be crushed by its own government debt 

Chriss Street explains at Big Government how Japan built up a debt of over 200 percent of its GDP through decades of 7 percent annual deficit spending -- coincidentally, our level of deficit spending for the last two years. The Japanese government's attempts to stimulate its economy failed, which is bad enough. But now, Japan's overextended borrowing power is being cut back. Its bond rating has been downgraded at just the moment it's going to need to borrow hundreds of billions of dollars.

As a result, "there is a strong risk of a financial melt-down in the world’s most indebted nation."

This is pretty important for us, because the laws of finance and economics apply to us, too. Someday, we could have a national disaster bigger than anything we've seen so far -- perhaps multiple 9-11 attacks on the same day. What are we going to do if we've already maxed out the national credit card on wind and solar subsidies, turtle tunnels, and overpaying union contractors?

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David Freddoso

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David Freddoso came to the Washington Examiner in June 2009, after serving for nearly two years as a Capitol Hill-based staff reporter for National Review Online. Before writing his New York Times bestselling book, The Case Against Barack Obama, he spent three years assisting Robert Novak, the legendary Washington... more
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