Economic worries Japan PM Japan will suffer the same fate with Greece

Prime Minister (PM) of Japan Naoto Kan began working on his leadership duties. As he promised, financial reform a top priority.

But the most important reform that begins with pessimism. Yesterday (11 / 6), the leader of 63 years declared that Japan could end up like the Greeks.

"It's very difficult to maintain policies relating to debt. We could see for themselves that the financial turmoil that occurred in Europe today originated from Greece. We might go bankrupt (like Greece) if confidence in the national stock of domestic debt vanish and are increasing rapidly," said Kan in the first parliamentary meeting yesterday as quoted by the Associated Press.

Later, go Yukio Hatoyama's replacement, the value of Japan's domestic debt increased rapidly. But, financially, a much stronger Japanese conditions when compared with Greece. Nevertheless, doubling the value of the debt makes Kan thought to raise taxes. "We can not let the growing national debt to swell, while the government was busy dealing with population problems, the number of elderly people is increasing and the birthrate has declined," Kan explained.

Despite a tight hold posted by China, Japan was still perched on the position of the two countries with the largest economy in the world. But, among the advanced industrial countries the other, the value of public debt of Japan, including the most high. The IMF, based on 2009 data, the value of Japan's debt reached 218.6 percent of gross domestic income (GDP) it.

"My promise to do more intensive cooperation with the Bank of Japan (BoJ) to prevent Japan from deflation. The government will also work hard to formulate a strong and comprehensive policy," said former finance minister (minister) of Japan is. He promised to announce the package of economic policies later this month.

Kan worries that Japan will suffer the same fate with Greece denied Hiromichi Shirakawa. A senior economist at Credit Suisse's Japan's PM calls excessive worries. "Greece does not only cover the public debt, but also a very large foreign loans. Meanwhile, Japan's trade surplus. We also include creditor country. I think, Japan is not as bad as the Greek," he explained.

In the first parliamentary meeting yesterday, Cabinet Kan who was only three days less one personnel. At the end of the meeting, Minister of Post and Financial Services Reform Shizuka Kamei resigned. He pointed Kan break a promise about the privatization of the postal office. Because, a senior politician the Democratic Party of Japan (DPJ) had refused to extend the parliamentary session to discuss reform of the postal office.

"The promise that had been agreed by both parties denied. Therefore, I chose to leave the cabinet," Kamei said as quoted by Agence France-Presse. Politicians are meant to delay the 74-year postal privatization plan initiated by former Prime Minister Junichiro Koizumi had until June 16 next. But, the administration chose to postpone discussion Kan continuation postal privatization plan and focus on the upper house elections to be held on July 11.

Although Kamei resigned, People's New Party (PNP), where he will continue to support the shelter DPJ coalition in parliament. "We regret the resignation of Kamei, but the coalition would go ahead," said Secretary-Yoshito Sengoku Cabinet. Kan immediately appoint a replacement yesterday Kamei. He chose Shozaburo Jimi, Secretary General of the PNP, as the minister of Postal Reform and Japan's new Financial Services