Part 6/7:

As Japan grapples with its mounting fiscal issues, the country finds itself at a critical juncture, akin to Britain, in the so-called “basket case of deplorables”—nations that have become ensnared in cycles of increasing debt and inability to enact tax relief measures. If Japan is unable to negotiate favorable trade deals, notably with the United States, it risks prolonged economic instability.

Clocking in at the ominous threshold, Japan may soon find that tax hikes become necessary to address its burgeoning debt—a move that could trigger a cycle of economic contraction, exacerbating the very issues it seeks to resolve. Higher taxes could further stifle growth, leading to increased relative debt burdens.