The Japanese Financial System Is Beginning To Spin Wildly Out Of Control

The Japanese Financial System Is Beginning To Spin Wildly Out Of Control







The financial system of the third largest economy
on the planet is starting to come apart at the seams, and the ripple
effects are going to be felt all over the globe. Nobody knew exactly
when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of reckoning for Japan was coming eventually.


After all, the Japanese economy has been in a slump for over a decade, Japan has a debt to GDP ratio
of well over 200 percent and they are spending about 50 percent of all
tax revenue on debt service. In a desperate attempt to revitalize the
economy and reduce the debt burden, the Bank of Japan
decided a few months ago to start pumping massive amounts of money into
the economy. At first, it seemed to be working. Economic activity
perked up and the Japanese stock market went on a tremendous run.
Unfortunately, there is also a very significant downside to pumping your
economy full of money. Investors start demanding higher returns on
their money and interest rates go up. But the Japanese government cannot afford higher interest rates.
Without super low interest rates, Japanese government finances would
totally collapse. In addition, higher interest rates in the private
sector would make it much more difficult for the Japanese economy to
expand. In essence, pretty much the last thing that Japan needs right
now is significantly higher interest rates, but that is exactly what the
policies of the Bank of Japan are going to produce.

There is a lot of fear in Japan right now. On Thursday, the Nikkei
plunged 7.3 percent. That was the largest single day decline in more
than two years. Then on Monday the index fell by another 3.2 percent.

And according to Business Insider, things are not looking good for Tuesday at this point…

In post-close futures trading, the Nikkei has dropped by another couple hundred points, and has dropped below 14,000.

Are we witnessing the beginning of a colossal financial meltdown by
the third largest economy on the planet? The Bank of Japan is starting
to lose control, and if Japan goes down hard the crisis could spread to
Europe and North America very rapidly… Source Cybertribe network


Thanks to: http://aworldchaos.wordpress.com

Thanks goes to the Cabal and the 'obastard clan, and don't rule out Bernanke- Biggest crook known to man and the banking world, and the fed, the m'f'er-

Its all a well laid plan. Just sit back and wait for the collapse to reach home. Its coming......or so I was told....