Thursday, August 4, 2011

Yen Is Heading For A Currency Collapse

Takeshi Fujimaki


The Japanese yen is now being chosen as a safe haven. But the currency is about as safe as standing under a cliff in the way of a landslide in the pouring rain. Japan is on the verge of a financial collapse, which is far more dire than the budget deficit problems in Europe or the US. The accumulated debt of Japan is now at 924tn yen ($11.3tn; £7tn). Even if 10tn yen is repaid every year, it will still take 92 years to pay off the debt. Ideally the government would be limiting its spending in an effort to cut its debts. But that is not going to happen, especially given the devastation caused by the 11 March earthquake and tsunami and expenditure is about to balloon once again. The government says its intends to spend as much as 92tn yen this year, with a large chunk of that going on rebuilding. If it keeps this level of spending going, then there is no way it will pay off the national debt even in 200 or 300 years . . . . .

10 comments:

  1. AH So! FRIED LICE?

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  2. bonzi! 854
    pearl harbour being revisted

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  3. 9:08
    Yes, but this time Pearl Harbor event will happen in Japan. I don't think even the 900 billion dollars trade surplus of America debts they have will be enough to cover the rebuilding of the tsunami ravage. Debt from America to cover debt in Japan. It is all fucked up debt economy.

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  4. Using hyperinflation as a viable option to solve Japans' currency problems?!?! Is he mad?!?! It's Pandora's Box. The cure is far worse than the disease. The Fukushima radiation must be taking a toll on Japanese IQ's.

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  5. All is fine, it'll all be in the green again from Friday onwards. I bet on it! There will be a huge rally!

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  6. 12:34
    He went to Zimbabwe school of economic taught by Mugabe.

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  7. Everything is fine children, just relax a little bit. The economy is in a minor readjustment phase.
    You will see a HUGE rally soon, there will be instant prosperity for everyone, just sit back and enjoy the bumpy ride!

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  8. I tend to think that Japan will be the catalyst , with debts totalling 200% GDP, a rapidly aging population , an economy in turmoil,their much vaunted manufacturing sector savaged by events in March, well , you get the picture.

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  9. 117k McDonalds, Walmart, and government grunt jobs were supposedly added. Constant money printing and 3.31% 15 year mortgages.

    No, a huge collapse isn't coming. Really.

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  10. a harbinger. sure they'll be a bounce in stocks, short life span of stimulus today..couple months at best, then they'll be no "safe" place to park your money. in 2008 all private loss became guaranteed by govs everywhere and stimulus added on top, now gov are set for losses, along with continuing private losses..is worse this time as no real guarantee can be found through gov's, thus the talk finally, now moves in actions, starting in euro of bond holder's taking losses-no guarantee's anymore, risk off for real soon enough as a global QE will after a short time end up chasing people out, what choice other then to print and sell assets, the great last grab this time of real assets, the last assets as paper is..paper, and will lose value.

    market closures, revaluations of currency, QE's, buy ups of huge tracks of farmland and lands, privatizations even wars for core assets, oil mineral water rights, power generation and grids, roads and rails..all are and have happened, the future isn't the yen or swiss franc nor doller or euro or stocks although all run there for now as no where else to go and a herd mentality and there are short play profits to be had, an end will come of all competing currency eventually...but with real and core assets owned by the few and rule by few, won't be a pretty place, may expect wars. competing currency's and competing individual nations policy decisions will end eventually, that's the push. trump's on Tv saying how he's buying massive real estate-why? why not buy yen or sovereign bonds? why buy a railroad and a utilities generator when one can own bonds, unless on default one gets the..water and sewer system backing the bond and can raise rates huh. paper is NO play long term...got wheelbarrows?

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