Lessons from Japan’s monetary experiment

Daniel Lacalle

graphic image showing a red eclipse of the eart signifying japanification of global economy“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

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