Japan's last economic stand

Recently I read a blog regarding the financial instability of Japan and how they would play a pivotal role in any theoretical economic collapse. It stated in the end

Japan is quickly surpassing the bubble economy achieved during the late 1980s. Its equity and bond markets have become more disconnected from reality than ever. The nation now faces a collapse of the yen and all assets denominated in that currency.

And that

This is Japan’s last stand and there is no exit strategy except to default explicitly on its debt

This of course would have dire ramifications for the world economy

Unfortunately; China, Europe, and the United States will also soon face the consequences that arise when a nation’s insolvent condition is coupled with the complete abrogation of free markets by government intervention

kingworldnews.com...

This in itself was not worrisome; however, when coupled with this

The Japanese economy slipped into recession in the third quarter, a surprisingly poor performance that could delay a planned sales tax hike.
Gross domestic product shrank by an annualized 1.6% in the three months ended September, Japan's Cabinet Office said Monday. The result was much worse than the 2.2% expansion expected by economists.

money.cnn.com...

And David Cameron saying things like

“red warning lights are flashing on the dashboard of the global economy” and a second global crash could be looming.

www.telegraph.co.uk...

In addition to Another nail in the petrodollar's coffin?
And Your bank deposits not considered money anymore. it's becoming painfully obvious the seas of world finance are becoming quite stormy.

a reply to: phoenix9884

A once great nation is falling...

Definitely going to be a war soon...

what products do they buy from us

a reply to: phoenix9884

Japan, the U.S., and other world powers have already staged their exit strategies. The coming financial collapse has been manipulated to buy time to procure resources, specifically precious metals which will be used to institute a new currency base. Platinum, gold, silver, and other metals have been leached through fracking processes worldwide. The Japanese first discovered the technique of extracting these metals via fracking waste water, with additives that release the metals from faults. The waste water is collected and processed to reap the metals. This procedure is happening here in America as well by Devon, Chesapeake, and many other major O&G companies. They are lining their pockets with precious metals for when the economies are imploded.

I believe this is also why comet and asteroid capture/drilling are being pursued. Those who have the means to capture, process, and return precious metals will advance. Those who cannot will start the war. America has been raping Afghanistan and Pakistan for their precious metals...it is happening, and on a much larger scale worldwide.

Airliners and Nuke Plants, That's A Lot Id' Say Arjunanda a reply to: onequestion

a reply to: Boscov

The TPP or whatever it is is going to use the dollar to trade jn isn't it?

Well with QE over and tens of billions of dollars in cash leaving our shores every month to ilegal arms and drugs and other criminal activities and being offshored there's not going to be a lot of cash circulating the market here in the us, eventually they'll have to start QE again. It doesn't help that we still have a trade deficit. It doesn't help that the goods we consume here are made in other countries.

We need to close the loop.

If Russia and China can generate financial shockwaves simply by trading oil for cash directly between each other and bypassing the world commodity markets, imagine what they can do if they start doing more trade between each other for other commodities. Given that the Western economies are based on selling financial services and commodity speculation via speed-of-light trading, I can only imagine where that would lead to.

a reply to: phoenix9884

The most bizarre part of this is that the Japanese people are savers and view spending beyond your means to be grossly irresponsible. Yet, they have no problem with their government doing this. And the same happens everywhere else on the face of the planet. People them selves know it is foolish to spend your money instead of saving it for a rainy day. Yet no government does that. And yet politically these people will complain when their government acts financially responsible claiming that they must not care for the children. Seriously? HOW ARE PEOPLE SUCH FOOLS? Getting into that much debt and then keeping the problem going on purpose is very stupid.

It makes sense in America where individual people are also complete idiots when it comes to saving their money. They rarely save enough money, so its no surprise their government has annual deficits. Yet the population of Japan does save their money for rainy days. They do save for retirement. I can only guess their financial common sense is overstated. The way every government goes into debt more and more almost every year reflects very poorly on humanity in general.

Thank God for Japan. If it were not for Japan, we could not see the future of all other modern Western nations, whose economic policies all mirror the policies of Japan. The only difference between the economy of Japan and other modern nations is that it has advanced much further along in its economic disaster which is showcased by its debt to GDP of 230% plus. So, by watching what happens in Japan we can all see our own hideous economic future.

Japan very clearly to everyone... even the incredibly wrong Keynesian economists, has no chance at all of ever escaping their debt by simply paying it down slowly over time. Japan's options of course are either to inflate the currency or default. Inflation is their only acceptable option politically.

The biggest question is that when Japan's finances totally collapse, will the rest of the nations banks topple like dominoes? Or, will be lucky enough to sit by without significant consequence while enjoying a preview of the demise of the rest of the governments whose debt-to-GDP ratios are closer to 100%.

Well, inevitably someone has to be the first in line to go down in flames.

Maybe it'll be Japan, maybe it'll be someone else.

Whoever it is, the rest of us will eventually follow suit anyways... as we are all hanging on by the tips of our fingernails.

Government intervention took place because of fallout from financial speculation, in turn brought about by free market capitalism. That's why world unregulated derivatives market has a notional value many times greater than the global economy.

we were warned over 18 months ago this was going to start soon when the crazy IMF chick done her numeration speach.
doesnt sound so wierd now does it,lol. you just had to listen to the whole speach.

Been here for many years and have seen a stable work force of educated people to the 3 D's types of work. (dumb, dangerous and dirty). The work force has changed recently, now one does not have to wait till March to apply for a major company, they hire all year long now. That is a very major change for Japan. Also the people in their upper 20's that work for the majors, they have more freedom to change employers without a backlash.
Now, the yen today is actually at 118 per dollar, not long ago it was under 100 yen to the buck. With insider knowledge of what is going on with the TPP (America seems to be the big bad dictator on this, but actually I think it is all the multinational companies now) Japan has been buying the raw material for manufacturing. Now they can sell their product and get more yen back. All a game of business and competition. Maybe also a monopoly game. Either way, Much of Japans heavy industries have left and went else where in the world leaving the work force with temporary employment on contract. Terrible and this effects the housing industry. Home loans are right around 1.9 % to 2.3% for fixed 35 year loans here. Just no real jobs and vacant housing in the Tokyo area and surrounding areas (countryside) is quite high. This country needs to bring back the real jobs and have a stable plan for the citizens of this country. By the way, for many self employed people, the pension is $180 US dollars a month right now. Yes, I know. Wife is collecting it. Crazy, just simply crazy after paying into all these years.

All those stupid debts that every country has, have been forced on everyone by a failed economic system by people that KNEW EXACTLY that this would happen eventually.

Screw them, we don't need those people swaying the economy left and right like they please. We shouldn't have to suffer an economic breakdown because of the planned obsolescence of their evil prospects. They belong in prisons as we default their debts. Iceland got it right, we should all do the same.