-Japan's government debt is mostly serviced by the large domestic population of savings. These savers invest their money with the government and receive a very low increase rate in return. This rate is derived from the high demand for Japanese debt, but this trend might will change over time. As Japan's population ages, they will run down their savings and in turn, have less money to purchase Japanese debt. This decrease in demand will increase the interest rate paid by Japanese government. As interest rates increase, so will the threat of a fiscal crisis in Japan. …
-Many government around the world will have to cut spending and increase taxes to avoid fiscal deficits that increased during the financial crisis. These programs will decrease government spending in the economy, which will slow growth rates. Additionally, citizens will have less money and benefits to use in case of emergencies. The fear is that cuts might be so drastic that they hurt the economy. … "Fiscal Austerity Programs" has a significant impact, so an analyst should put more weight into it. "Fiscal Austerity Programs" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value.
-"Since 2003, the proportion of young Japanese entering the labour force who want to be entrepreneurs has halved, to 14%, while those who seek lifetime employment has nearly doubled, to 57%."
The lose of entrepreneurs slows down a countries rate of growth, because entrepreneurs create the next generate of companies.
-When other countries intervene to change the value of their currencies, it may have the affect of encouraging China to continue their policy of intervention in the face of global opposition. …
-Whaling hurts Japan's image aboard, because they go against a long-standing moratorium on commercial whaling. They catch whales under the banner of "experiments", but whale end up on dinner plates instead. This standing is causing tension with neighbors who all observe the ban.
International tensions may interrupt trade negotiations with other countries that don't like what Japan is doing. It could also cause boycotts of Japanese goods in nations with concerned citizens. The damage to Japan's reputation may hurt it over the long term. …
-"Japan has a long traditional of supporting smaller companies to the detriment of the health of larger companies. The "Convoy System" allows small market share for small firm, so they don't disappear, while larger firms are given the ability to quickly expand and compete. The interference of capitalism results in less efficiencies across the entire market and results in less profits for larger firms."
Source: Economist Magazine. What Japan needs is more bankruptcies. July 1st. … "Zombie Companies" will have a long-term negative impact on this entity, which subtracts from the entity's value