This is not going to be good for US market and Japan. Japan has more than 250% of its debt vs GDP and for a long time has fed US with less than market % for its debt. Japan accumulates trade deficit with US over. It has increased its bond rate up to 2% ending the period of free source of funds for arbitrage (borrowing yen for higher yield investment) Japan supported both deficits of US: trade and budget.
Its now over, the yen is on free fall and very likely its going to be devalued and Japan economy could collapse. Japan was a big headache for IMF for a long time according to former boss Lagarde.
Japan used to be the 2nd largest economy in the world after US, and was the hotbed of manufacturing. But now its famous brands have falllen: Toshiba, Sharp, National, Sony. Now Japan is campaigning itself as a tourist destination. Do you think that this is Karma for Japan, following its atrocities in WW 2.?
