What’s that honey? A ‘green shoot’ you say?
Hideo Kumano, chief economist at Dai-ichi Life Research Institute, said recently about Japan that:
"There is no problem as long as there are flows of money in the bond market,"
Of course referring to the chance that Japan can be heading for a default.
Based on fiscal 2010's nominal GDP of 475 trillion yen, Japan's debt is estimated to reach around 950 trillion yen or roughly 7.5 million yen per person ($80,375). And it is starting to be hard for them to borrow more money.
I want you to read that sentence above again. This is the key for so many reasons.
"There is no problem as long as there are flows of money in the bond market,"
Remember all those stimulus packages getting thrown around? Where do you think all that money went? Do you think they bought food and gave it to the starving?
Remember the bailouts of certain banks? Ever wondered what they are doing with all those trillions? Hiring people?
But maybe the most important part to remember here is that there is only so much debt the market can soak up. And pretty much every country on the planet is screaming “sell, sell, sell” wanting their new government issued debts to be bought up.
How long do you think they can keep this up?
Greece, Dubai and Iceland were only the prelude and are in these circumstances tiny players, but what about Spain? Italy? Or, as mentioned above, Japan? What do you think will happen when one of those major players cannot sell their debt anymore?
I have news for you people, if it weren’t for the scams, the manipulations and the freshly printed money piles, it would have been game over already. All they have done is bought some time and in doing so seriously increased that Tsunami wave of financial and political Armageddon lurking beneth the surface.
Keep a close eye out, because once this really starts most of you can say goodbye to your comfortable lifestyle and say hello to the Greatest Economic Depression in the history of mankind.
Couldn't agree more don't mind if we post this over at the network do you?
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