http://www.informedtrades.com/540891-infographic-japans-debt-crisis.html


This video elaborates on the thesis that Japan faces a debt crisis that will result in significant devaluation of the Japanese yen. Here are the key points presented in the video:

1. Excessive Debt -- Japan has a debt/GDP ratio over 2.3 -- significantly higher than any other major economy in the world, including any of the Eurozone economies.

2. Net Importer -- After the Fukushima event, Japan shut down its nuclear reactors and was forced to import fuels. This led to the country becoming a net importer, which means that it runs twin deficits: a trade deficit and a budget deficit.

3. Aging Population -- Japan has an aging and declining population. As a result, Japan may not be able to grow its economy or cut social spending.

4. Low Interest Rates -- Japan has had zero percent interest rates for over a decade. As a result, investors do not have incentive to hold yen.

5. Technical Trend -- Since June of 2012, the yen has been declining and has formed a pattern of lower highs.