Monday, April 11, 2016

Former IMF Chief Economist Admits Japan's Doomsday Scenario Is Now In Play

The content of Pritchard's piece should be familiar to anyone who has followed our musings on this topic for the past two years.

In it, he says that "Japan is heading for a full-blown solvency crisis as the country runs out of local investors and may ultimately be forced to inflate away its debt in a desperate end-game, one of the world’s most influential economists has warned."

From the article:

Olivier Blanchard, former chief economist at the International Monetary Fund,said zero interest rates have disguised the underlying danger posed by Japan’s public debt, likely to reach 250pc of GDP this year and spiralling upwards on an unsustainable trajectory ....