Sunday, September 16, 2012

Japan's Debt Bomb and China's "We Must Go To War With Japan"

Japan has the highest debt level relative to its economic output of any country in the world. Japan's nuclear reactors shut down March of 2011 after the Fukushima event. This forced Japan to nearly triple energy imports. The increase in energy imports led Japan to becoming a net importer rather than a net exporter. The importing of energy requires greater deficit spending to pay for it - which in turn adds more debt. Japan's aging population means its workforce will likely decline - thus making the trade deficit difficult to reverse. Low interest rates mean investors don't earn much income for holding yen. Is the only way for Japan to get out of debt to print yen? …. And now, troubles with islands and conflict with China?

And now add this on top: "Thousands besiege Japan's embassy in Beijing over Tokyo's assertion of control over disputed islands in East China Sea." And China is not happy: "For The Respect Of The Motherland, We Must Go To War With Japan." China sends ships, then Japan sends ships.... This is how escalation begins and war starts.... (Read about how this is getting out of hand here).
Thanks to Zero Hedge: 

Thanks to Nic Coldicott

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