Japan has a debt problem that makes the deficit of most countries look like $20 you forgot to repay your friend. It now has the worst debt in the world. As of May 2012, it was 960 trillion yen (somewhere around $12 trillion dollars!). The Finance Ministry says it’ll be a cool quadrillion by the end of the fiscal year. Graph by EMajor Japan’s debt is 200% of its gross domestic product, which essentially means it’s twice the size of the country’s economy. To put it into perspective, the US national debt is around 80% of its GDP. Economists say that if a country’s debt reaches 90% of its GDP, this means likely economic collapse. But Japan’s debt is different. It’s mostly owed to the Japanese people in the form of government bonds. The Japanese government owes each of its citizens about 7.5 million yen. Since 95% of its debt is held domestically, its economy is not as precarious as it would be if it were debt to foreign countries. Or is it? None of the pundits seem to agree. Japan is the world’s 3rd largest economy, so its debt is a major concern to people all over the world.