"Government debt to GDP ratio in Japan will reach 250 per cent this year, and they are currently spending about 50 per cent of all central government tax revenue only on debt servicing. Believably, there are two ways out of this overwhelming debt trap for the country. Either the country defaults or they try to inflate the debt. Currently if we observe, they have chosen the second option, which is trying to inflate the debt away. Abenomics has initiated the greatest quantitative easing experiment that a major industrialized nation has attempted since the days of the Weimar Republic. If we look at the plan, over the next two years, Bank of Japan plans to zap 60 trillion yen into existence out of the thin air and use it to buy government bonds."
Posted on: Sun, 25 Aug 2013 07:46:48 +0000
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