- 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
February 10th, 2015 · No Comments