The repercussions of excess debt are glaring. Take the example of West. Most countries are facing dire consequences of allowing excesses in their economies. In Asia, the situation of Japan is not good either. In fact, the finance minister of Japan has requested to set aside approximately US$257 bn towards funding interest payments for FY15. This is almost equivalent to GDP of Portugal which roughly stood at US$245 bn in 2012, as reported by IMF!

In the past, incessant spending to revive the sagging economy resulted in higher debt. Increasing welfare cost of the ageing population also added to the debt pile. In fact, right now, Japan's debt is almost two times the size of its economy. Increasing debt has raised concerns over how the country will finance its interest payments. If it increases tax rates then consumer spending will slowdown. This will further hurt economic growth. And if it plans to service the payments by printing additional money, yen would come under severe pressure. It seems like after the rupee debacle, another Asian currency is on the verge of a collapse.