Wednesday, May 22, 2013

Japan Economy: The Beginning of the End


Thanks to Zerohedge.

Christine Hughes sums it all up perfectly, for Japan, "The Math Is Stacked Against Japan - It's Not 'If', It's When."


Click here to watch the video: OtterWood Observations on Japan, May 2013

And to remind my detractors and to pat myself on the back, I'd like to point out that I said EXACTLY the same thing nearly six months ago on Dec. 29, 2012 when this mad policy by the Abe government was announced:

Here's Why A Weak Yen Will Destroy Japan

The clowns in the LDP think a weak yen will rescue Japan's faltering economy by making exports cheaper... Sounds good... That is, if there anyone to buy Japanese goods.

I fear that the weaker yen will be the last straw in breaking the Japanese Economy. Here's my reasoning why... 



China and Japan are in a row over islands. Boom! Down goes exports to Japan's biggest trading partner. Please refer to the NY Times article, "Japan Trade Suffers as China Ties Deteriorate":

"Shipments to China, which is Japan's biggest trading partner, tumbled 14.1 per cent as demand dropped for Japan-branded products..."

Also refer to Japanese Car Sales Plunge Amid China Rage.

Europe is in no condition to be big spenders on anything as Euro states are already in deep recession.

The USA isn't in good shape either as it is in recession too and Japanese cars aren't selling well due to Fukushima and other issues.

Gee? So what will a weak yen certainly buy for Japan? Answer: How about a 10% increase across the board on energy imports?


Read the rest here: Here's Why A Weak Yen Will Destroy Japan

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