Chinese Business Media Cautions Japanese Bond Bubble Is Ready To Burst, Anticipates 40% Yen Devaluation!

• The world is about to face a global currency crisis. The progression of the collapse appears to be: start in the Eurozone, the Euro will collapse, followed by UKP, Japanese Yen … spread to the rest of the world … and finally the USD meltdown.
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• I do not believe that it will only affect the major currencies or just the western industrialized countries’ currencies. It will be a global currency meltdown. All minor fiat currencies will follow down the toilet bowl of currency debasement against hard assets. Got physical gold yet?
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• Take for eg. the Japanese Yen, when it its devalued, the Chinese will employ competitive devaluation for their Chinese Yuan. Once this happens, other Asian nations will follow suit to remain economically competitive. In particular, the Asian Tiger economies: South Korea, Singapore, Taiwan, Hong Kong and 2nd tier rising economies: Thailand, Malaysia, Philippines .. etc.
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  Chinese Business Media Cautions Japanese Bond Bubble Is Ready To Burst, Anticipates 40% Yen Devaluation! 
  by Tyler Durden, http://www.zerohedge.com/ 
  It is a fact that when it comes to the oddly resilient Japanese hyperlevered economic model, the bodies of those screaming for the end of the JGB bubble litter the sides of central planning’s tungsten brick road. Yet in the aftermath of last month’s stunning surge in the country’s trade deficit, this, and much more may soon be finally ending. Because as Caixin’s Andy Xie writes “The day of reckoning for the yen is not distant. Japanese companies are struggling with profitability. It only gets worse from here. When a major company goes bankrupt, this may change the prevailing psychology. A weak yen consensus will emerge then.”
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  As for the bubble pop, it will be a sudden pop, not the 30 year deflationary whimper Mrs. Watanabe has gotten so used to: “Yen devaluation is likely to unfold quickly. A financial bubble doesn’t burst slowly. When it occurs, it just pops. The odds are that yen devaluation will occur over days. Only a large and sudden devaluation can keep the JGB yield low. Otherwise, the devaluation expectation will trigger a sharp rise in the JGB yield. The resulting worries over the government’s solvency could lead to a collapse of the JGB market.” It gets worse: “Of course, the government will collapse with the JGB market.”
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  And once Japan falls, the rest of the world follows, says Xie, which is why he is now actively encouraging China, and all other Japanese trade partners of the world’s rapidly declining 3rd largest economy to take precautions for when this day comes… soon. Oh, and this: ” If the bond yield rises to 2 percent, the interest expense would surpass the total expected tax revenue of 42.3 trillion yen.”
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  … for more click here!

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