by Michael Pento
Under the stewardship of Shinzo Abe, the nation of Japan has become a global leader in debt, currency devaluation, and inflation. Unfortunately for the Japanese, Abenomics is also leading Japan into a hyperinflationary depression, as the first of his three arrows has shot right through the yen and put a gaping hole in the wallets of every Japanese citizen.
The Bank of Japan (BOJ) has placed all its chips on the bet that inflation will cure all the nation’s economic problems. Making deflation public enemy number one is rather convenient when your country’s public debt to GDP is the highest in the world. In order to end deflation, the central bank has purchased 70% of all newly-issued Japanese Government Bonds. All this money printing is intended to get prices rising, and it has been very successful. Japan’s consumer prices rose 3.1 percent in August from a year earlier. Prices for fuel, light, and water rose 6.4 percent on the year. But as real wages continue to fall, the bull’s eye appears to be directed on destroying the Japanese middle class.
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