Hedge fund manager Kyle Bass says on cnbc that Japan will face a debt crisis:

“Greece will circle the drain and be ungovernable in the next 30 to 60 days,” said Bass, founder of Heyman Capital and famous for presciently shorting subprime mortgage bonds before the industry collapsed. “Japan is in the crosshairs of the market…I’ve never seen more mispriced optionality in my entire life.”

“The fact of the matter is this is no longer an exercise in quantitative analysis,” he said. “It’s a question of when, not if.”

“Madoff taught us something,” Bass said. “You can make promises for a long time as long as you don’t have to live up to them.”

Demographics in Japan are horrible. The average age is increasing at an alarming rate and the culture of entitlements are causing enormous deficits. Eventually something will have to give. You can distort the financial economy all you want, but the fact of the matter is that Japan needs people to care for its elderly, but the birth rate is falling and immigration is minimal, so unless they invent robots to care for their aging population and free energy to power the robots and grow their food and produce the necessities of life, they can print money and keep borrowing, but the net result is inflation not production and services to deal with their poor demographics and scarcity of natural resources.