Inflation is only solution to Japanese debt crisis

Inflation is the only possible solution to Japan's bad debt crisis, according to Smithers & Co, because the taxpayer will not be asked to shoulder the ¥120 trillion burden. The reach of the bad debt crisis, which has been dragging down the banking sector, is all pervasive, says economist Andrew Smithers, with many Japanese companies carrying high levels of leverage continuing to make losses. He says: 'Japanese companies' poor profitability is the result of the rapid past growth of the economy. During periods of rapid growth, low returns are normal. 'Now that Japan is a mature ...