"We should note that right now Japan has the biggest debt to GDP of any country, over 200%....
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“The demographic situation in Japan is also a disaster. But if the interest rates in Japan simply went from 1% to 2%, that will literally use up all of the tax revenues. That is just incredible.
So there is a hyperinflationary disaster looming in Japan, that’s absolutely guaranteed. I wanted to stress Japan because very few people focus on that, but it is yet another country adding to the many other existing risks in the world.
But even when you look at the US, with $15 trillion in debt, and roughly $1.5 trillion in tax revenues, it’s an enormous disaster waiting to happen. At 10% interest rates the US will use 100% of its tax revenues to finance the debt. So we will see many countries that will not even collect enough tax revenues to pay for the interest expense on their debt.
This is why money printing is guaranteed in Europe, the US, UK and Japan. History teaches us that a nation which runs large deficits and increasing debts could never create wealth in the long-run. Wealth has never been created by printing money, and this time, like it has before, it will lead to a financial crash.
This time the financial crash will be of a worldwide magnitude.”
'via Blog this'
