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Showing posts with label debt crisis in Japan. Show all posts
Showing posts with label debt crisis in Japan. Show all posts

Sunday, May 6, 2012

Japan is a "Bug looking for a windshield?" I think we just found it.



I've been writing for months that Japan's situation is past desperate (well, me and many others who follow the markets)... I've written several times over the last year that we are heading for the cliff. I've actually stuck my foot in my mouth (gambling man and all, you know?) and called for another major crisis to hit Japan this summer because I believe that Europe will be the trigger for the next massive crisis and I believe it is coming this summer. Please refer to: Here's Comes Europe's and Japan's Debt Crisis - Just in Time for Summer: 


This debt crisis has terrible repercussions for the world economy and Japan. Reuters has a good article on it entitled: Europe Poses Global Recession Threat: IMF. The article is a good rundown of the debt problem but the solutions they offer of throwing money at the problem are completely wrong (Been there, done that. Didn't work)... For proof of that, just look at how well throwing good money after bad has done for Greece.
Looks bad. These things have a way of getting out of control. But Japan is OK, right? Because these European countries can't print their way out. Japan can. Let's look at a few charts there. Here's a chart that shows the world ratio of debt to GDP:

Here's one to show Japan's debt mountain in yen:
As an important note, as of 2009, the Japanese national public debt, according to my handy-dandy calculations equaled over ¥6 million yen per man, woman and child in the country (about $72,000 USD). That means that if every single one of us coughed up ¥6 million yen and paid off our total debt today, we'd still be back in massive debt tomorrow as the costs of running the Japanese government, social security and health care, etc., etc. are completely out of control.

...
But wait! Things are getting better, right? Wrong! Here's an article you might want to read from a the New York Times that asks the laughable question: "Could Japan's Debt Lead to a Crisis?" (Let me ask you: "Could the next Pope be Catholic?") But, like I said, that article is a year old. I add it because it is a typical example of the confused reporting emanating out of the MSM... "Everything will be alright as long as government's keep printing money! We have to save the system!"
Well, no. We don't have to save the system. We can't save the system. The system is a wreck.
.......
I think, as I've said many times before.... The summer of 2012 is going to be a very hot one for Japan - as well as all around the world.


Of course, making predictions on when exactly the sh*t hits the fan is difficult. But, as famous American baseball player Yogi Berra said, "Making predictions is difficult. Especially about the future." 


Well folks, it looks, unfortunately, like these predictions might come true. The chances of the fan getting blasted by the crap and the reverberations slamming the Japanese economy just jumped up a hundred-fold.


Socialists won the presidency in France... I predict that will seriously damage the power of the bailout and pro-austerity crowd in the EU and I believe this is the beginning of the end for the Euro. And, as Mish Shedlock has successfully predicted when he said that someday, a right-wing nationalist is going to go before the electorate in his European country with a copy of the EU charter and while tearing it up, he tell people to, "Vote for me and I will exit the EU!" 

Now it has happened! Neo-nazi groups won enough power in Greece to be recognized in parliament and now the rumbling is for an exit of the Euro and no deal to any bailout of the bankers.


These events are going to affect Europe and the USA and Japan in so many ways..The unforeseen consequences of so many years of massive debt and money printing are coming to a head. 


What cannot go on... Stops. Japan is going the have to hottest summer in decades this year and, no, I don't mean Global Warming either.

Tuesday, March 27, 2012

Yen Devaluation Now Imminent? Being Called by Major Financials! Get out of debt - Get your financial house in order now!



Now, after yesterday's report that the main market analyst at China's Caixin Market News and Analysis reports that he is convinced of a 40% devaluation of the Japanese yen is imminent and inevitable, here comes another report hot on the heels from the United States. 




Market Watch reports in: The Yen's Looming Day of Reckoning



Japan is on an unsustainable path of a strong yen and deflation. The unprofitability of Japan's major exporters and emerging trade deficits suggest that the end of this path is in sight. The transition from a strong to weak yen will likely be abrupt, involving a sudden and big devaluation of 30% to 40%.


It will be a big shock to Japan's neighbors and its distant competitors like Germany. The yen's devaluation in 1996 was a main factor in triggering the Asian Financial Crisis. Japan's neighbors must have a strong banking system to withstand a bigger devaluation of the yen.Japan's nominal gross domestic product contracted 8% in the four years to the third quarter of 2011, and six percentage points of that was due to deflation. Without increased government expenditure, the contraction will be one percentage point more. Japan has not seen this kind of sustained deflation since the 1930s.


Without government deficits, Japan's economy will decline much more. Central government bonds and borrowings plus its guaranteed debts rose by 116.3 trillion yen ($1.4 trillion) during the period, equivalent to one-fourth of the level of the nominal GDP in the third quarter of 2011. If Japan had adopted balanced budgets, its economy would have contracted two to three times more. This will lead to a debt crisis in its private sector.



If you are living in Japan then it is time right now to get your house in order.


1) Stop using credit cards immediately
2) Get out of debt immediately
3) Store up at least three months (six months preferably) of food and water to get over the coming financial shock 
4) Protect your wealth by obtaining physical gold and silver


These warnings about Japan's collapse have been coming louder and louder and more often over these past two months. The crash that was predicted by Karl Bass and reported here in Debt in Japan Actually 492% of GDP! UK 497% of GDP!:



...People going along, as usual, in their ignorant bliss. The "leaders" knowing full well what's going on but trying to get out with what they can, while they can! The only difference between the sinking ship and the economy is there won't be any rescue coming for us.
While the entire world watches Greece and Italy, it seems, from looking at this chart, the real action is the UK, Japan, Spain and France. 
Business, government and household debt in Japan show a 492% of GDP problem for Japan. The tax and spend days are coming to an end soon in Europe, the USA and, of course, in Japan. 
This entire house of cards is going to collapse around our heads. When the collapse does come, it will come suddenly. Hope you have cash readily available and at least a few weeks of food and water ready. Because when the crash does come, stores will be empty in a matter if a few hours - if it takes that long.



You've read it on this blog and I seriously warn people to get ready... This could break any day now considering the still simmering situation in Greece, the worsening situation in Spain, Portugal and Italy, tensions and saber-rattling by the USA and Israel against Iran... And now more problems with a world wide move away from the US dollar.


May you live in interesting times.... Indeed. 

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