Saviors Of Earth

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Global fiasco brewing in Japan
Japan is dangerously close to blowing up on its sovereign debts. The IMF says Japan’s gross public debt will reach 227% of GDP this year. This is compounding up at ever-faster speeds as time passes. The only reason the Japanese economy has not yet exploded is because Japanese investors have not yet had the leap in imagination required to understand their predicament and act on it. Japan’s deficits are already within the hyperinflation red flag zone. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system. More here.
Japanese Yen vs Gold - May 2009 to February 2010 (chart)

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