I could not help noticing that China’s imports from Japan fell 16.2pc in December. Imports from Taiwan fell 6.2pc. The strong yen strikes again: Honda decides to build a high-performance hybrid Acura in Ohio – instead of its home nation of Japan. The firm’s continued shift in production to North American capacity signals a wider trend of Japan’s automakers to battle currency-related losses by moving operations.
Japan is on life support. The largest buyers of their debt are now sellers. Japan Post Holdings holds almost 3 trillion dollars of JGB’s and GPIF, the retirement fund, holds over $1 Trillion of JGB’s. Japan Post is the largest financial institution in the world and has 75% of assets in JGB’s and now wants to diversify. The retirement fund is liquidating $80+ billion per year to pay out benefits. Just read that the banks across Japan have 25% of assets in JGB’s and the IMF is coming over this summer to do an interest rate risk analysis if rates were to move 1% (double) what would be the impact to the capital of the banks? Are the banks going to move to 30%, no.
image: flickr.com/Austin Moody
"The Biden administration threatens to invoke Section 4 of the Fourteenth Amendment to sidestep the… Read More
"There are so many holes in the FTC and Sony’s opposition to the Microsoft-Activision merger… Read More
"A wide range of outcomes are still possible for 2023, ranging from stagflation to a… Read More
"The real 'capitalist achievement,' however, isn’t Graceland. It’s the fact that compared to the stuff… Read More
"The unseen cause of gentrification is the knee-jerk NIMBYism of affluent leftist neighborhood associations. And… Read More
"Politicians on the left would like us to believe inflation is caused by greedy corporations.… Read More
"As 'dark horse' candidate, Ramaswamy has a greater burden of proof before the electorate.… Read More
"The US economy may continue to grow or shrink few percent from year to… Read More
*AIER is a 501(c)(3) Nonprofit registered in the US under EIN:04-2121305