- Japan’s debt to GDP is over 200%! When the Euro and USD collapses I seriously doubt the JPY will last very long! The USD-JPY bas broken the 76.40 level yesterday (ie. JPY has strengthened against USD). How long can Japanese economic growth last with such a strong currency? The reality is: when the Euro and USD are debased, the Japanese government will also create massive amounts of JPY out of thin air to debase their currency (or their economy will tank). This will set off competitive currency devaluations in Asia! We are heading towards a global currency meltdown!
Concerns Are Rising on Japan’s Debt !
BY YUKA HAYASHI, http://online.wsj.com/
TOKYO—Jitters from Europe’s sovereign-debt crisis are now touching Japan, a country with a long-calm bond market despite fiscal deficits far larger than those of Greece or Italy.
In recent weeks, the cost of insuring against default on Japanese government bonds—a measure of perceived credit risk—has increased sharply, nearing the historic peak at the height of the Greek debt crisis in October. The price for default insurance, through derivatives known as credit-default swaps, exceeds levels seen last March, immediately after natural disasters and a nuclear crisis darkened Japan’s outlook. Investors will be watching two things closely in coming weeks: the credit-ratings …
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