Do you want to hear a shocking statistic?
43% of Japanese tax revenues are currently being used to service interest payments on government debt.
Now imagine what would happen if Japan didn't have near zero interest rates. The current rate on the 10-year Japanese government bond is only 40 basis points. A doubling of rates (which would still be very low) would mean interest payments would consume all Japanese governement tax revenue.
As far as what he likes, Faber points to European real estate and some emerging markets.
