Last August in our Japan Economic Outlook, we argued that economic and political events were developing in such a way as to make continued sustained yen and JGB strength untenable. This had been a trend that we began tracking as early as February 2012. While the worsening economic data trend has been long established (balance of payments, national savings, industrial production), political events have more recently begun to accelerate.
Elected officials are approaching debt consolidation with increasing urgency. This urgency indicates that, if not publically, they are privately aware that time is running out.
Please review our Japan Economic Update in which we analyze the key opportunities and risks for Japan: Iron Harbor Open Market – Japan (update)