Fortress Japan, R.I.P.
While Washington has been dutifully putting its financial house in order, Tokyo has been busy up-ending its finances. Talk about changing places. With the Japanese government forced to raise more and more cash, the flood of debt is pushing down bond prices and pulling up interest rates--in turn strengthening the yen. That'll crimp exports for sure, while higher rates will further cripple an economy reeling from deflation. It's hardly a recipe for economic revival.
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