Gold GBP 1,092/oz, JPY 130,890/oz – IMF: Japan Debt Could "Quickly Become Unsustainable"

Tyler Durden's picture

From GoldCore

Gold GBP 1,092/oz, JPY 130,890/oz – IMF: Japan Debt Could "Quickly Become Unsustainable"

Gold is trading at USD 1,698.90, EUR 1,268.00, GBP 1,092.30, CHF 1,557.30, JPY 130,890 and CNY 10,815 per ounce. 

Gold’s London AM fix this morning was USD 1,699.00, GBP 1,094.72, and EUR 1,270.38 per ounce.

Yesterday's AM fix was USD 1,686.00, GBP 1,083.55, and EUR 1,260.46 per ounce.

Cross Currency Rates

Gold is marginally higher in most major currencies today. Bargain
hunters have stepped in seeing opportunity. Gold's recent sell off has
seen it become oversold again and value buyers are again buying on the

Chinese New Year buying will commence soon which should contribute to
higher prices as it did in November and December of last year when gold
rose in both months.

Gold in British Pounds – 1 Year (Daily)

Geopolitical risk remains elevated and Middle East tensions are
escalating globally with Russia appearing to be prepared to risk
conflict over Syria with NATO and the US. Yesterday, Russian President
Dmitry Medvedev threatened to target and, if necessary, destroy the U.S.
missile defence shield in Europe once it is built.

A marked deterioration in US–Russian relations and concerns of a new ‘Cold War’ may support gold prices. 

While all the focus has been on Europe, and to a lesser degree the US
in recent months, two of the other largest debtor nations in the world,
Japan and the UK (including corporate and bank debt), have been under
the market's radar. 

This will change soon and will likely lead to the next phase of the
global financial crisis. The fact that we have a global debt crisis
which will almost inevitably lead to an international monetary crisis is
as of yet not acknowledged or realized by the markets and the media.

Today, the IMF warned in a new report that market concerns over
fiscal sustainability could trigger a "sudden spike" in Japanese
government bond yields that could "quickly" render the nation's debt
unsustainable as well as shake the global economy. 

Japan's public liabilities amount to roughly twice annual economic
output - a ratio worse than any other industrialized economy, including
turmoil hit Spain or Italy.

Gold in Japanese Yen – 1 Year (Daily)

Separately, Standard and Poor's says it's likely that it will cut
Japan's sovereign rating again, as the government hasn't made progress
in tackling its public debt burden. The agency cut the country's rating
to double-A minus in January, and has had a negative outlook on the
rating since April.

Japan is forecasting that its debt will exceed a staggering
US$13-trillion during the fiscal year ending in March next year.
S&P's Japanese director said the public finances were getting "worse
and worse every day".

The ‘Land of the Rising Sun' may soon see its economic sun set as the great global rebalancing unfolds.

Japan is not the only nation that’s economic sun may soon set. The
greatest debtor nation amongst the G8 is the UK with a total debt to GDP
ratio of 497% - much, much higher than Italy’s 313%.

Courtesy of Zero Hedge (see commentary)

So far the bond vigilantes have focused their activities on the
Eurozone but the appalling fundamentals of Japan, the UK and the US may
soon see their bond markets come under serious pressure.

The long term debt of the largest debtor nations in the world (10
Years at UK 2.2% ,US 1.88% Japan 0.98%) is currently very expensive and
low yielding considering contagion and the increasing sovereign risk

With 10 year bond yields in Germany spiking to 2.24% today, it is
only a matter of time before the turmoil inflicted on European debt
markets is seen in other large debtor nations.

The net result of this entire global debt crisis is likely to be
currency devaluations globally and an international monetary crisis.

Fail to prepare. Prepare to fail. 

Special GoldCore Offer: Perth Mint Gold Bars 1oz at 4.5pc Premium Including Free International Delivery - CLICK HERE. 

Silver is trading at $32.00/oz, €23.94/oz and £20.60/oz 

Platinum is trading at $1,548.00/oz, palladium at $582.93/oz and rhodium at $1,575

Gold steadies; equities and firm dollar weigh

Gold, Silver Fall for Second Time in Three Days on Dollar Rally

(Sydney Morning Herald)
Gold Thieves Behind Bars

Can Gold Save the Eurozone?

U.S. Fiscal Deadlock May Boost Gold Prices, Says IG

(King World News)
Jim Rickards - Who Will Bail Out the Fed & How High for Gold?

Russia Retaliates Against US: Puts Radar Station On Combat Alert, Prepares To Take Out European Missile Defense Systems

The UK - Nation With Greatest Combined Debt (Government, Corporate & Household) to GDP in the World

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slaughterer's picture

Kyle Bass is enjoying his Turkey today.  

Harlequin001's picture

'IMF: Japan Debt Could "Quickly Become Unsustainable"

There's not a lot gets past these people is there?

pemdas's picture

Super-Kenysian Richard Koo, --government needs to spend spend spend their way out the crisis -- the architect of the japanese disaster, will soon be debunked.

Socratic Dog's picture

That's why they earn the big bucks.  They see stuff that no one else can see.  Makes me proud,  knowing my tax dollars are lining their pockets for this sort of cutting-edge stuff.

Harlequin001's picture

yes, we're very lucky to have them aren't we?

Don't want to lose that talent now do we...

Chip's picture

never felt safer with these feeds coming in.

Mike2756's picture

They must have been skimming through Youtube looking for Kyle Bass clips.

johny2's picture

????! who could have seen that?

i-dog's picture

Open the barber shops! Haircuts, bitchez!

Oh regional Indian's picture

i-dog, do you remember a few months ago there was a few days hubub about the UK gorging on US Treasuries? 

Debt to GDP of 497%. i don't usually swear, but WHAT THE FUCK?

It's so in your face. Our face. In the dirt. The game is on and all you can do is bay and squeal like PIIGS from behind the chain link fences.

NVTS! Bread and Sushi everyone, IRON CHEF style!



i-dog's picture

They are indeed rubbing our faces in it, ORI. Humiliation is part of their MO ... just like they did to Qdaffy before they popped him. (It's also the reason they generally use poison rather than bullets to assassinate their that the end is both painful and humiliating).

They despise the "useless eaters" and will be dishing out a whole lot more humiliation on the debt slaves before the final coup de grace.

MolotovCockhead's picture

If Japan go bust and the Banskters are force to take a hair cut, they will probably have to shave off the pubic hair and under the arm pits too.

PaperBear's picture
2 Trillion Dollar Federal Reserve Stimulus On The Way?

lolmao500's picture
France seeks Arab backing for Syria intervention

France will seek Arab support on Thursday for a humanitarian corridor in Syria, the first time a major power has swung behind international intervention in the eight-month uprising against President Bashar al-Assad.

Foreign Minister Alain Juppe, who first floated the proposal for a humanitarian intervention on Wednesday, gave more details of the plan and said he would propose it to a meeting of Arab League foreign ministers gathering in Cairo to discuss Syria.

trav7777's picture

continuation of France's moves on Libya....CDG probably en route

High Plains Drifter's picture


gerald celente, double mindedness  and the white shoe boys of wall street.........

Rudolph Steiner's picture

Reuters ~
MF/Blackrock Conspiracy to kill CME  

NYSE sources, speaking on promises of confidentiality, denied rumors that they have any knowledge that Blackrock is somehow involved in a plan to undermine confidence in the futures market. According to noted Zero Hedge columnist Tyler Durden:
"Some far fetched conspiracy theorists, tin foil milliners and bloglodites, of late have been tossing about some rather Molotov ideas partnering MF Global's Jon Corzine and Blackrock's  Lawerence Fink in a conspiracy to destroy the CME."
Earlier today unnamed Blackrock sources denied rumors that Blackrock is an any way involved in the unfortunate "gamble" of the MF's terrible exposure to European debt, but that "...any insinuations that our company is in any way in cahoots with some scheme whereby we participated, either directly or indirectly, in a plan to sacrifice MF Global's investor monies in a larger plot in the destruction of the CME, or that we have any interest in any derivartive instruments which could stand to benefit from a diminution of the CME's ability to perform as a market, is, well, it's just patently false."
Blogosphere  conspiracists differ in their opinions as to the veracity of such denials. Some are amusing and some are disturbing.
"It's all out war, out there, today. The rats are jumping ship all over the place and the regulators are all asleep in the pilot house wheel. You wanna know what happened with MF Global? I'll tell ya, there is a Fink at Blackrock, my friend, follow the money! This is the end of the futures business. It's over. Smart money is already dodging out to ETF land. Yeah. True. But how long will it take for them to pull and an MF with the equity market? And this Fink is at the center of all this. Believe it."
Doomsters like Gerald Celente, who claims to have substantial Gold positions through MF Global, have been speaking publicly for some time  on the corruption of the financial system. He is recently quoted in a Bloomberg interview with this curious analysis of the MF Global situation,
"Ok. No one is safe here in the cross fire between these two gangs of Wall Street hooligans. Blackstone is at it toe to toe with JP Morgan for control of this ... the world's commodity hedging sport, a blood sport, and they have locked horns is a contest of historic proportions. This madness, OK,  it's like the new dog and the old guard are having it out, right here in the public square for all to see. Like a Spike channel ultimate fight marathon, the gloves are off, the gentleman's rules - gone. The old ways of hedging anything are finished, over, kaput, and there is no referee anymore, they have been bought off and sold to the highest K street bidders. And right now I just happen to be caught in the middle of this nasty crossfire transition holding an empty bag of (expletive deleted)."
While getting sources to go on record is difficult at this time, word has it that there are a small crew of forensic accountants, hack sleuths and astrologers at Muddy Waters who have been quietly establishing a NYC war-room from which they plan to map this manoeuvre, profit from the end of futures every step of the way.
"You don't want to fight seismic moves like this, you wanna ride the plate."

Chip's picture

This is absolute truth. NY has had it in for CME since the share price broke $700. Take a look at B Share Breakroom sometime.

spanish inquisition's picture

The stong yen charade is about over. 10-15% of Japan is probably uninhabitable. The strong yen is from money they are bringing home to deal with it and is running out. To continue a mass clean up they will need to resort to printing and that means a weaker yen.

Sean7k's picture

The question I'm asking myself today is this: who buys all these crap bonds? 

In total, the numbers are staggering. The interest rates are paltry, if anything. Obviously, they have no other place to park this largess, because if they did, it would be in more productive enterprises. They have printed a colossal mountain of debt and credit with no regard to what they would finally do with it all. The bonds are like sponges, absorbing the excess so the people don't figure out what it represents. Since no one considers who holds all these bonds and because they are considered to be of value, the system continues on. 

We all ask who will continue to buy the bonds of one nation or another, but they still get bought- even if the nation itself must do it. 

This is why they continue to buy and issue bonds. Without them, the whole ponzi collapses. 

Harlequin001's picture

Unspent cash is latent inflation. It either goes into commodities or gold and then into commodities but inflation it is, one way or the other.

Paying interest to banks to keep excess cash on deposit at the CB is about to become a very expensive business, and when it does, watch what happens to real prices.

Not long now...

Sean7k's picture

Except that will ruin the banks as well. This is their party, they don't want it to end. Inflation is economic warfare, it is only performed to discipline or destroy an opponent. All debt is a lien against a nation's resources. 

Presently, there is a new hierarchy being established. Leaders are being removed, defenseless resource rich countries are being re-configured, corporations are being destroyed and re-constituted. 

Could the NWO be gearing up for the next push forward? Out of confusion comes order and not necessarily the kind of order we will want...

Harlequin001's picture

It will definately ruin the banks. Mathematically that's a foregone...

As for the NWO, that would be a personal opinion. Personally i see no way for any NWO to control the rioting masses.

I just see desperation amongst politicians trying desperately not to admit that the world has been defrauded...

Are you kidding's picture

Who buys these crap bonds?  I'll give you a's your retirement.  Pension funds, other governments, and big banks buy most.

Sean7k's picture

That question was rhetorical.

lolmao500's picture

Japan should have been downgraded to junk a long time ago...

- inversed pyramid of population

- shitload of debt

- Fukushima

And for some Russian doom...

Zero Govt's picture

Jim Rogers said the UK was "totally insolvent" ...looking at the chart, he wasn't kidding!!

jm's picture

Japanese debt could quickly become unsustainable.


Some very lucky person will be in the right place at the right time when this happens. Until then, it is stupid to fight the widowmaker.

Winston Smith 2009's picture

Not a "lucky" person, anyone who has been listening to the brilliant Kyle Bass over the last few years.  Like all true financial "experts," he doesn't smoke hopium and simply applies grade school math:

Kyle Bass interview - Sayonara Japan

jm's picture

Well, a lot depends on whether he is just been jawboning or actually stupid enough to be short JGBs for the last few years.  Makes him either a prophet in the wrong place at the wrong time or an asshat.

Carlyle Groupie's picture

The poor guy had to sit and converse with those fuckshiet CNBC idiots. I bet he took a long hot shower afterwards, I would have.

Hint: "Simple. Just watch 5 & 10 year JGB rates.". Might mean that he is just watching the rates for an entry point....

youngman's picture

That is something I have thought much about a cold war affects gold prices......?????

PulauHantu29's picture

Military spending always pushes oil and some metals higher....demand economics and scarcity stuff....

walcott's picture

another day more threats. Keep serfs in their place.

They have the (NWO errr... a global kingdom) system perfected.

shhhhhh! don't tell anybody.

HD's picture

Is there going to be anyone, anywhere that doesn't need a bailout? The great irony would be if civilization as we know it ended not because of the atomic bomb, a global pandemic or an asteroid slamming into our atmosphere - but rather a few bankers and their CDS of doom.

BigInJapan's picture

Good link. Thanks for this. The Japanese people, by and large, do not believe they have a problem with finance. I'm talking 99% of the folks I know. Nor do they believe they have a problem with debt. These problems are never spoken of in the media. "It's alright", you see because "all of our debt is domestically held". No. Not all of it. Not even close if you include corporate debt. 50-odd comments about the country that will ruin us all... Yeah, keep looking at Europe.

John Steinsvold's picture


An Alternative to Capitalism (if the people knew about it, they would demand it)
Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.
I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:
John Steinsvold

“Insanity is doing the same thing over and over and expecting a different result”
~ Albert Einstein


Carlyle Groupie's picture

Can you offer an alternate solution to the lizards who use greed, deception, and lies in an attempt to enslave people they think are inferior, and not chosen?