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Friday, February 25, 2011

Japan's economic wall is hit

If you don't know about Japan's financial problems it is well worth reading sources from the net. Basically, Japan entered into a period where it's demographics is aging, resulting in an imbalance in the work force. America is facing the same problem (Baby boomer).

However Japan has financed its reckless financial policies the last 20 years with their retirement savings. Net result? On paper you have trillions of dollars in retirement savings, and on the other side trillions of dollars in government debt. There is not a "net" asset position here as a nation.

Things are finally going to get interesting in Japan, as their pension funds become sellers, rather than buyers, of Japanese debt. Its just a start. My prediction for Japan: The last 20 years will now be looked at as good years compared to the next 20 years.

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