Japan’s Debt Markets “Implode” – by Peter St Onge
Japan could buy a couple more years if they can cut a trade deal with Trump and get back to growth.
But it’s only a matter of time; Japan has now crossed the Rubicon of tax cut straitjacket.
The next stop is required tax hikes to service the ever-growing debt.
That would send Japan into a doom-loop, with higher debt driving higher taxes that shrink the economy and grow the relative debt.
As for America, we re a decade behind Japan on debt.
But now that $2 trillion deficits are looking permanent — apparently no matter which party’s in charge — we are barreling down the same path as Japan.