Massive Japanese Debt Monetization Is Coming, Yen to be Devalued | Chris Puplava | FINANCIAL SENSE
You can only stretch a rubber band so far before it snaps back or is
torn, so too is the case with government indebtedness. There eventually
comes a point when the road ends and the can hits a brick wall. It
appears that Japan is rapidly approaching that brick wall and there are
two likely outcomes. One option is that the bond vigilantes revolt and
yields on Japanese debt spike or the second option is a massive debt
monetization by the Bank of Japan (BOJ). Given the massive amount of
debt relative to the Japanese economy and associated interest payments
on the debt, Japan can’t afford a sharp rise in yields. Thus, it appears
the BOJ is likely to step in and monetize the debt and the currency markets may be signaling this very outcome.
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