Japan Credit Rating Cut

[MorningSong]

Japan Credit Rating Cut by S&P on Absence of Strategy to Curb Debt Levels
By Toru Fujioka and Aki Ito - Jan 27, 2011 3:05 PM GMT+0100

Japan’s credit rating was cut for the first time in nine years by Standard & Poor’s as persistent deflation and political gridlock undermine efforts to reduce a 943 trillion yen ($11 trillion) debt burden.

The world’s most indebted nation is now ranked at AA-, the fourth-highest level, putting the country on a par with China, which likely passed Japan last year to become the second-largest economy. The government lacks a “coherent strategy” to address the nation’s debt, the rating company said in a statement....

http://www.bloomberg.com/news/2011-0...is-stable.html

[Lost Soul]

Peter Schiff mentioned this in one of his recent blogs. The same has happened for China. Schiff observed that it should be the U.S., the biggest debtor nation in the world and not Japan or China, which are the 2nd and 3rd largest holder of U.S. debt after the Federal Reserve, that should have its credit rating reduced.