by Andrew Hoffman, Miles Franklin:
All fiat regimes fail from their introduction in 7th century China to the most recent casualty, the late 2000s Zimbabwe dollar. Several are in the final phase of debasement – like the Argentine Peso, Venezuelan Bolivar and Ukrainian Hyrvnia; while countless others are “waiting in the wings” for their inevitable enshrinements in the currency Hall of Shame. For a variety of reasons, the Japanese Yen appears destined to be the first major economy to experience such ignominy in the 21st century; which frankly, could commence in a shockingly short period of time.
Due to Japan’s unique demographics –i.e., the world’s oldest population – it experienced its typical fiat currency asset crash a decade before everyone else; and thus, commenced its hyper- debt accumulation stage a decade earlier. Sadly, Japan’s “demographic hell” is replicating itself throughout the Western world; as in America, whose “deadly dollar demographics” all but guarantee the path toward Japan’s 240% debt/GDP ratio, en route to total dollar collapse. However, America’s case is particularly dire given four decades of abusing the dollar’s “reserve currency” status has made it the principal target of an angry, disenfranchised world in which China, Russia and the new “Eastern bloc” are taking the reins of political and economic power. Thus, to answer the question “Is America the next Japan?” – our answer is YES, to the umpteenth power!
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