Get Updates
About
tito@titocosta.com
Tito on the web
Tito on Twitter
Tito on Friendfeed
Tito on Facebook
Tito on LinkedIn
Tito's Search
Tito's News
Favorites
Slice of MIT
Baseline Scenario
Betting on the currency of a country on the verge of bankruptcy is an interesting play. But traders are betting on the yen as we speak. It sure could work on a short term basis, but I still think that Japan will face the wrath of the bond market in the next 18-24 months.
But I am not a trader …
Visual chart above leaves few doubts about the issue with Japan.
From John Mauldin’s weekly E-letter:
While Toyota is the world’s largest car company, auto sales in Japan peaked 18 years ago. Supermarket sales have fallen every year for the last 11 years. This is a country in a long-term decline, with massive debt. While there is still a lot of economic power there, it is not the country of the future. Unless they figure out how to grow their population, it will be a long slow slide.
