Here are the elements of difficulty for Japan, each one serving to reduce their economic and financial stability:
The total shutdown of all 54 nuclear plants, leading to an energy insufficiency
Japan’s trade deficit in negative territory for the first time in decades, driven largely by energy imports
A budget deficitthat is now 56% larger than revenues (!!)
Total debt standing at a whopping 235% of GDP
A recession shrinking Japan’s economy at an annual rate of 2.3%
This will lead to renewed efforts to debase the yen and we will see 100 vs the $ again. Perhaps an overshoot like in 1998, 79 then back to 147 . . .
