Japan Facing Debt Crisis as Interest Rates Could Consume 100% of Tax Revenue

What was said

"If interest rates in Japan get to 6%, and, you know, they've been 6% in the past, years and years ago, and they've certainly been a lot higher than 6% in America. But a 6% interest rate would be enough to consume 100% of Japanese tax revenue just to pay interest on the national debt."

Schiff warned that Japan faces an imminent sovereign debt crisis, with debt-to-GDP at 250% and the yen falling to 161.5 against the dollar. He calculated that if Japanese interest rates reach 6%—historically normal levels—the entire tax revenue would go solely to interest payments, creating a vicious cycle of currency devaluation and inflation that America will eventually face.