Recently, Standard & Poor, Moody and Fitch—three major credit rating agencies—all have downgraded or intend to downgrade Japan sovereign credit rating. The fiscal deterioration problem of Japan, which has been disclosed by the bigger and bigger debt snowball plus the potential implicit debt crisis, appears to be too difficult to solve. In the perspective of political economy, Congress distortion, frequent change of prime minister, mutual distrust between government authorities, waste of public spending under bureaucratic dominant political system and political conservatism of local finance are considered as the important political factors that should be responsible for the deep fiscal trouble, which is hard for Japan to get rid of. <<