Lessons from Japan’s monetary experiment
“The failure of Abenomics has been phenomenal. The balance sheet of the central bank of Japan has ballooned to more than 100% of the country’s GDP, the central bank owns almost 70% of the country’s ETFs and is one of the top 10 shareholders in the majority of the largest companies of the Nikkei index. Government debt to GDP has swelled to 236%, and despite the record-low cost of debt, the government spends almost 22% of the budget on interest expenses. All of this to achieve what?”
USAGOLD note: There is a certain inevitability in the path Japan has taken economically and there is a growing contingent of economists who believe that the rest of the industrialized world is fated to follow it as a matter or course.
Repost from 11-3-2019