Friday, August 5, 2011
Japanese Yen is heading for a currency collapse
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 financialcollapse, 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. (more)
