The G7 heads of state summit has begun. The host, Japan's Prime Minister Abe began with doom and gloom. Accounts suggest he warned of the risk of a crisis on the scale of Lehman if appropriate policies are not taken. It is not clear to whom Abe was addressing. It may not have been the other heads of state. It may have been a domestic audience Abe had in mind. At the finance ministers and central bankers meeting last week, Japan's Aso indicated that contrary to speculation, the retail sales tax hike would still be implemented next April. However, the opt-out has always been a serious crisis on the magnitude of ... (full story)