Fujimaki: Japanese Hyperinflation! (Again!)

|
Includes: DBJP, DXJ, EWJ, EWV, EZJ, FJP, FXJP, FXY, HEGJ, HEWJ, HFXJ, HGJP, JEQ, JGBB, JGBD, JGBL, JGBS, JGBT, JPN, JPNH, JPNL, JPP, JPXN, JYN, NKY, YCL, YCS
by: Brian Romanchuk

It's been fairly quiet on the JGB collapse front; apparently, people got tired of losing money shorting the things. However, this has not stopped Takeshi Fujimaki from re-iterating his Japanese hyperinflation call.

Fujimaki:

"Japan has ballooning debt and the BOJ is financing debt, that's the problem," Fujimaki said. "The yen will weaken further and the risk heightens of a hard landing. There is no debate on an exit policy, so once the economy improves, it will bust and there will be hyperinflation."

The reporter noted that he has been calling for a JGB selloff for 20 years, but mercifully did not mention his "Hyperinflation by 2015!" call.

This is perhaps a sign that the JGB bears may start waking up from hibernation. Although they will probably have to develop some new material; the "debt-to-GDP ratio is really high!" story is starting to sound somewhat lame.