The 3rd largest economy in terms of GDP is on the brink of bankruptcy with a colossal debt (274%) and a freely falling currency. If the trend continues, the problems will be terrible for the entire world.
The Yen in Free Fall
The Japanese currency is not yet in free fall, but it could well be heading that way. The yen has been weakening since 2021, but the decline has accelerated last month.
The Japanese are naturally very upset by this situation, and rightly so. Japan is one of the most import-dependent countries in the world, as it imports more than 90% of its energy and over 60% of its food. The weakening of the yen is making the Japanese suddenly feel poorer, as their electricity bills are rising.
A Few Economic Reminders
Let’s…
