Check out this article, regarding Japans Bond problems!

Source: Bloomberg Business Week. Kan Plans May Require $76 Billion Japan Tax Rise
“June 16 (Bloomberg) — Japanese Prime Minister Naoto Kan may have to raise taxes by as much as 7 trillion yen ($76 billion) to fulfill his pledge to cap bond sales in coming years, according to an independent adviser to the government.
Kan has committed to holding new bond sales to 44.3 trillion yen through the year to March 2012. At the same time, his administration is considering an annual public-spending limit of 71 trillion yen over the coming three years, according to two government officials familiar with the deliberations.”

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Check out this info graph comparing California to the world’s other economies. California alone is the world’s 8th largest economy.

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Check out this interactive graphic showing a map of Europe from the European Commission’s Economic and Financial Affairs division. Click on any country to get a pop up of data:

-GDP growth (%, yoy)
-Inflation (%, yoy)
-Unemployment Rate (%)
-Public budget balance(% of GDP)
-Current account balance (% of GDP)

click for interactive graphic

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The U.S. is not forking out billions as rumors say. The U.S. involvement is fairly minimal, contributing about $3 billion compared to Germany’s $29 billion and France’s $22 billion. In all 15 euro-zone governments are dishing out $106 billion out of the $145 billon loan to Greece according to the European Central Bank. The IMF is participating in the remaining $39 billion.

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From Niki Kitsantonis and Matthew Saltmarsh at the NY Times: Greece Calls for Activation of Financial Rescue Package
Describing his country’s economy as “a sinking ship,” the Greek prime minister formally requested an international bailout on Friday … The plan foresees up to €30 billion, or $40 billion, in loans from Greece’s euro-zone partners, as well as up to €15 billion from the International Monetary Fund.

“We are prepared to move expeditiously on this request,” Dominique Strauss-Kahn, the I.M.F. managing director, said in a statement issued in Washington, where a meeting of the Group of 20 finance ministers is taking place.

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The Euro fell to $1.326, a one year low against the dollar on concerns of Greek’s debt problems. Moody cut Greece’s sovereign rating and hinted at possible downgrades to come.  Short term bridge loans to Greece may help stabilize the decline of the Euro.

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Heres an interesting chart from www.visualeconomics.com that shows the income gap between urban and rural societies within China.

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One way to measure a country’s debt position is by comparing GDP to gross external debt. Through that method we can determine what are the odds that a country will be able to repay its debt. Figures were referenced from the World Bank.

The World’s Top 20 Debtor Nations. These rankings my surprise you!

                                                                     External debt                Gross external debt             2009 GDP (est)
                                                                        (as % of GDP)                  (2009 Q3)

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Check out this article from WSJ: China Takes Aim at U.S. on Economy By ANDREW BATSON, IAN JOHNSON And ANDREW BROWNE

Couple of issues discussed;

• Premier Wen Jiabao said U.S. efforts to boost its exports by weakening the dollar amounted to “a kind of trade protectionism.”
• Recent deterioration in what he (Jiabao) called China’s most important foreign relationship was because of the arms sale to Taiwan and meeting with the Dali Lama.

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U.S. Census Bureau Press Release:

“total January exports of $142.7 billion and imports of $180.0 billion resulted in a goods and services deficit of $37.3 billion, down from $39.9 billion in December, revised.”

Imports and Exports have been on the rise. However still below previous recession levels. The bulk of the trade deficit is a result of China and oil.

The graph from CalculatedRiskBlog.com shows the monthly U.S. exports and imports in dollars through January 2010.

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