The Japanese Endgame

  • Some argue Abeconomics has already failed. Others argue it will end in hyperinflation, or in a massive capital flight, or a bond market crash, or all of the above.
  • Others argue that Japan won’t reach the escape velocity needed to bring its debt situation under control.
  • While we can’t discard these risks entirely, we think that a large yen depreciation could create the necessary growth in nominal GDP to drag Japan back from the brink.
  • Since that is the path on which they seem to be going, there are also some investment opportunities here.

The Japanese Endgame | Seeking Alpha