Loading ...Ystdy I put up a post talking about how bad the financial situation is in Japan…….ie
Japan’s debt markets are beginning to blow up.
Japan is the grandfather of monetary policy insanity. Every crazy move western central banks have introduced in the last 15 years was first introduced by Japan a decade earlier. The U.S. first introduced Zero Interest Rate Policy (ZIRP) and Quantitative Easing (QE) in 2008. Japan’s central bank, the Bank of Japan (BoJ) introduced that lunacy in 1999 and 2001, respectively.
Since that, the BoJ has:
Bought so many shares in Japanese stocks that it is the largest shareholder of Japanese stocks in the world. Indeed, it is a top 10-shareholder in 40% of the companies trading on Japan’s stock market: the Nikkei.
Acquired over 50% of Japan’s debt outstanding.
Launched a single QE program equal to 25% of Japan’s GDP.
Cut interest rates to NEGATIVE
here is a monthly chart of Dollar/Yen…..with monster base that says the Yen could more than halve from here…..ie the Crisis is real and going to get way worse.