The Yen And Its Failure To 'Fail'

Bruce Wilds profile picture
Bruce Wilds
931 Followers

To consider the Japanese yen a "safe haven" currency flies in the face of reason. For years many economist have looked at Japans economic path and predicted an economic crisis brought on by the growing debt of its government. The myth promoted by the central banks that a major currency cannot fail is accepted as fact by many people however, the rapid demise of either the yen or the euro is all that will be needed to reveal the truth and remind people everywhere that our system of fiat money is held together only by faith in the system and a prayer. Clearly a clear timetable for such an event is very difficult to predict. Several factors playing into such a scenario and how fast such an event might take to unfold after its onset remains difficult to answer. In recent years as Japan has undertaken a policy to weaken its currency and to strengthen its exports America has until recently remained mute in sympathy of the problems Japan is facing. Nothing good is really occurring within the Japanese economy. Prime Minister Abe has even said he will delay a sales tax hike because it threatens to derail the country's fragile recovery. The reality is that much like the situation that developed in Greece it is clear that Japan is facing a wall of debt that it will never be able to repay. The difference is that Japan controls the press that prints its money.

Small Shifts From Bigger Players Move The Yen

In the future Japan's debt can only be addressed by printing more money and debasing the yen. In truth this means they would be paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands

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Bruce Wilds profile picture
931 Followers
Bruce Wilds is an independent businessman and licensed general contractor that owns real estate in the Midwest, his holdings include apartments, retail space, and office complexes. He has invested in several businesses and traded both commodities and stocks for several decades. Wilds considers himself well anchored to reality and the economy as he maintains, designs, and leases buildings. His work has made him keenly aware of rapidly changing lifestyles and trends in new business formation. The not for profit blog he maintains incorporates many of the experiences and knowledge garnered from his hands-on business style, extensive travels, and studies of history, politics and economics. Bruce Wilds is also the author of the book "Advancing Time", the book focuses on how the ever quickening pace of change impacts today’s society and the massive challenges it creates. He feels that it is crucial we understand that we are living in a unique era the likes never before experienced by past generations. History viewed in the framework of mans time on earth forms the crux of this somewhat radical perspective. Journeys from the beginning of man to our current state helps us make sense of our fast changing chaotic world. Advancing Time illuminates the responsibilities society faces. Used as a tool Wilds wrote it with the hope it would help clarifies the choices before mankind, guiding and giving hope to those who want to have a positive impact.

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