VIDEO LESSON - Yen Crisis: What It is and How to Trade It
25 December 2014, 21:11
0
288
Key Points:
1. Japan has an incredible debt burden
2. The country is running a budget deficit, which means it is still addicted to debt
4. The country is running a trade deficit and has a demographics crisis, which suggest it lacks the ability to grow its way out of its crisis
5. This may result in a devalued yen resulting from the Bank of Japan printing yen to pay off debt as well as from foreign debt holders growing increasingly concerned about the situation and withdrawing capital from Japan.
By many measures, Japan's debt crisis is the largest and most insurmountable of any industrialized nation in the world. In this guide, we'll take a look at the factors that are driving the debt crisis and the potential impact it will have on financial markets -- and thus how individuals may be able to protect themselves financially if the crisis unfolds as many expect it to.
Japan has the highest debt/GDP ratio of any major industrial economy, and higher than those of any of the trouble economies in Europe.
1. Japan has an incredible debt burden
2. The country is running a budget deficit, which means it is still addicted to debt
4. The country is running a trade deficit and has a demographics crisis, which suggest it lacks the ability to grow its way out of its crisis
5. This may result in a devalued yen resulting from the Bank of Japan printing yen to pay off debt as well as from foreign debt holders growing increasingly concerned about the situation and withdrawing capital from Japan.
By many measures, Japan's debt crisis is the largest and most insurmountable of any industrialized nation in the world. In this guide, we'll take a look at the factors that are driving the debt crisis and the potential impact it will have on financial markets -- and thus how individuals may be able to protect themselves financially if the crisis unfolds as many expect it to.
Japan has the highest debt/GDP ratio of any major industrial economy, and higher than those of any of the trouble economies in Europe.
