I recommend one article on Japan's debt problem
There are many people who consider Japan's official bond market will collapse even tomorrow. I am worried about the problem, too, but not to the extent of those pundits.
Anyway, our tax rate may be so low that individuals and firms are accumulating huge savings. In this milieu the bonds issue effectively work as supplementary taxation (but refundable and even with interest payment), in so far as much the bonds are mostly owned by the Japanese.
But in NBR's site you can find more elucid explanations by Pete Williams about how Japan is different from Greece and others. I agree with most of his commments.
(You can see it here)
http://nbrforums.nbr.org/foraui/message.aspx?LID=5&vt=t&PID=40454&MID=40464
On the other hand we have to reform our medical insurance and pension system. We will also raise the VAT in a few years.
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