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Japan's Fiscal Nightmare

Japan’s debt-to-GDP ratio of 225 percent is the worst in the developed world. Standard and Poor’s has already downgraded the country’s credit rating, Moody’s has said it might follow suit.

The country, which has suffered nearly two lost decades, saw first-quarter gross domestic product (GDP) decline by 3.7 percent on an annualized basis.

Current Prime Minister Naoto Kan narrowly survived a no-confidence vote, but he has promised to quit as soon as the current crisis is over. If he does, the country would have to choose its sixth leader in as many years.

There is plenty of blame to go around for Japan’s dismal state. Click ahead to find out who the scapegoats are.

By Deepanshu Bagchee & Rajeshni Naidu-Ghelani
(Posted: June 8, 2011)

Photo: Will Crocker | Getty Images