THE GLOBAL CRISIS: Clues from Japan’s Central Bank on The Global Crisis

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  Link to the Slides and Sources: https://www.itmtrading.com/blog/peak-…
  Other important links: The Rise of Insolvent Zombie Firms https://youtu.be/6akjkfpiaug
  Many people think that the current fiat money regime can go on forever and point to Japan as a prime example. Afterall, their economy collapsed in the early 1990’s after decades of rapid economic growth. In 1992 the BOJ began a never ending series of “extraordinary policy” as they experimented with, and expanded the central bank took box. Today, the global central banks look to Japan as a monetary trendsetter. On October 1, 2019 Japan will raise the sales tax from 8% to 10%. The BOJ estimates that the tax increase will cost households 5.6 trillion Yen and collapse consumer spending. Will this be the straw that breaks Japan’s back and drives them into the full MMT experiment? Who knows more about the financial system threats than those that create and manage it? Q1 2019 kicked off what will likely be a banner year for central bank gold purchases, which are up 68% YOY as a “diverse breadth of central banks continue to buy gold”. Think they know something you don’t?

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