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For one thing, Japan's quadrillion-yen debt (yes, that's right, public debt passed 1,000 trillion, or a quadrillion, yen in June, equal to 200 percent of GDP) might force it to raise sales taxes as planned. That in turn would crimp domestic demand, with about a third of economists forecasting a recession if the sales tax rises from 5 to 8 percent next April as proposed.
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