Japan's external debt snowballed during the "Lost Decade" of the 1990s and has since spiralled. Heavy borrowing to pay for a rapidly ageing population and stimulate the perennially stagnant economy continues unabated, having risen to eye-watering levels during the pandemic. Japan's debt now stands at $10.46 trillion (£8tn), which is more than two-and-a-half times its GDP.

Other countries would be in severe crisis with this level of debt. But Japan is doing just fine, with its creditworthiness in the A category. Japan's debt is mostly held in yen, which is itself a leading reserve currency, and owned domestically, so the lion's share of liabilities is subject to the country's minuscule interest rates.

The Japanese government also has a healthy current account surplus and ranks as the leading holder of US debt. This is certainly one country that won't go bankrupt any time soon.

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