Japan's public debt: Godzilla comes to life
For years people have been asking question about Japan's public debt.
Why are yields so low when the debt is so huge? How can this be sustainable?
These low rates have allowed the government to maintain a system which is grosly ineficient and unsustainable over the long term.
Now they are facing what will probably be the most expensive natural disaster in modern history. The effect on their economy is unknow but it will be huge.
In my opinion, the monster that was lurking in the deep will most probably wake up. He is terrifying: over 10 trillion $ worth of terrifying. Just to put it into context, Greece's national debt -which has cause such a stir on the international markets- is about 425 bn $.
I would therefore conclude 2 points:
1 - Be scared, be very scared ... (my favourite quote, which comes from the Adam's Family).
2 - Gold is good: it's shiny and it can't be printed on pieces of paper. Even if the price doesn't go up or falls slightly, who cares? It is safe.