Jake at EconomPicData had a chart this morning that really caught my eye. Take a look at the growth in debt across all sectors since 1998. Now visualize the likely growth of the government components going forward.

On another front, Japan’s industrial output fell 8.1% in November versus October. That’s the biggest one month decline on record. 

From the NY Times:

At the same time, fresh data indicated that Japan faces a period of deflation next year, while falling employment and consumer spending added to the bleak picture and highlighted how difficult it will be for Japan to extricate itself from the recession.

“It’s a big mess,” said Ryutaro Kono, chief economist for Japan at BNP Paribas, referring to the industrial output. “We’ve never seen anything like it.”

Industry output in November plunged 8.1 percent from a month earlier, the biggest decline on record. The fall surprised even the most pessimistic of forecasters, despite a flurry of announcements in recent weeks showing manufacturers like Honda and Sony racing to scale back production as domestic and overseas demand plummets.

Throughout Asia, the story is the same. Plummeting demand from consumers in the West is savaging their export oriented economies.