Visualizing Japan's Debt Crisis

Tyler Durden's picture

From the largest Japanese pension fund unwinding its JGB holdings to Kyle Bass' infamous 'debt-saturation Japan Trade' and Dylan Grice's original Japan funding crisis discussion, the nation - now facing Chinese dis-satisfaction over the recent island-purchase - continues to stagger with its Keynesian-endgame heading to a Koo-nesian disaster. The following info-graphic, via Informed Trades, provides everything the savvy investor needs to know about Debt/GDP, balance of payments, energy imports, demographics, and currency debasement.


Source: Informed Trades

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Michael's picture

Like I said before, ZH is going to run out of new topics trying to bury previous ones.

I have never seen so many topics posted here on a weekend back to back so fast..

LULZBank's picture

Trying to get it all out before the site gets shut down for national security reasons! LOL

Irelevant's picture

All you need is a group of JP Morgan employees setting ablaze the US Consulate in Zurich and Obama will call for immediate shut down if ZH as beying a threat to banking bonuses!

Manthong's picture



So when does the shit hit the fan?
Will it come from Madrid  or Tehran?
Or Athens or Rome?
Or Bernank here at home?
I’m with Kyle,
Keep your eye on Japan.

Michael's picture

They're all pissed off because the CIA/Mossad/MI5 money, disguised as foreign aid, to Libya, Pakistan, and Egypt is going to be cut off by the US Senate.

Michael's picture

Complete and Total Worldwide Economic Collapse 2012

TruthInSunshine's picture

While I will not disagree with the general structure of this overall thesis that is presented, I would be remiss to point out that I think it is incredibly disingenuous to state that "the yen has been steadily declining since May of 2012," without providing the context that the yen has also been on a massive tear against both the USD and the € for a decade now; so much so that Japanese manufacturers have been forced to offshore much of their production, whether automotive or electronics, because they can't possibly hope to make a profit or even break even by manufacturing those products within Japan.

It wasn't that long ago that 1 USD bought 140 yen, and today, 1 USD buys 79 yen.

I've pointed this fascinating and perplexing point out before.  No one seems to have a plausible explanation as to why/how the yen has surged so significantly against other major currencies at during a time when the Japanese Government and BOJ have been printing yen furiously, and even at a faster rate than many of the currencies the yen has appreciated in value against.

dunce's picture

All other things being equal(of course they never are) it looks like the relative strength of the yen is allowing them to buy oil priced in dollars at half price. Not that that will save them from big problems built in their debt and demographics for all that long. It seems to me that debt holders all over the world are facing monetization and since most of it will be govt. debt. , the financial system looks headed for collapse

Seer's picture

"No one seems to have a plausible explanation as to why/how the yen has surged so significantly against other major currencies at during a time when the Japanese Government and BOJ have been printing yen furiously, and even at a faster rate than many of the currencies the yen has appreciated in value against."

State/national debt is based on the notion of the citizens being able to repay such debt.  I'd proffer these reasons as to why the Yen is elevated:

1) The Japanese citizens are by and large savers (they have money)*;

2) The Japanese citizens are obedient.

* Obviously, this won't hold (but no one else is "holding" very well either; the Japanese are just standing on a more secure platform that's starting to sink.

If you are a creditor these reasons/traits would look a LOT better than those offered by other countries.

Things are, and will continue to, unravel for the Japanese at increasing rates. Without real, physical resources, esp energy, a country is really fucked. (and those who rely on exports of energy are also in peril as trade drops off because trade partners become increasingly unable to pay for energy imports)

Salah's picture

Always hits the fan with a national security concern.....i.e. Russia invades Georgia, August 2008...was "the event" that triggered the whole rotten house of MBS shit to collapse and the subsequent Lehman episode.

Watch for that NatSec "event". 


spdrdr's picture

Talking about what on Earth are you?

Please explain how a minor border skirmish in Eastern Europe directly caused the loss of value of MBS tranches sold in the U.S.A. 

Votewithabullet's picture

john cusacks "say anything" , there are no repercussions, ZH post yesterday said "china calls for war" (with japan) you read the post and and it turns out ONE FUCKING CHINOOK was holding a sign. Its the reason Rosie (who i respect) goes on cnbs regulary and gets his ass handed to him everytime, this MF is to big and too vast to be managed or regulated, or even sucessfully debated, ya kant gaht  thar from har...

AurorusBorealus's picture

It is well-known that the censors for the crown in France prohibited publication of the works of Enlightenment figures, but when the underground press published these books, the censors read them voraciously.  Voltaire, Montesquieu, Diderot, d'Alambert were never arrested and their books never confiscated or burned in any systematic way by the regime they were so critical of.  In large part, because those insidet the regime knew that the criticisms of the Enlightenment were precisely on target.  It didn't hurt that most of these men were men of great wit and could even make secret policeman laugh at themselves.

OpenThePodBayDoorHAL's picture

There was a bookseller right outside the gates at Versailles. He carried copies of all of the above, plus Rousseau. Marie Antoinette was a frequent customer, though her tastes ran mostly to porno.

People forget that the French Revolution was not a bunch of peasants with pitchforks, it was upper-middle class and miinor aristocracy that were getting screwed by the 1% and were tired of it. The peasants with pitchforks & guillotines came later.

AurorusBorealus's picture

It is ironic... is it not... the parallels between these internet bloggers, wikileaks, et al and the French enlightenment figures, the incredible similarities between the positions and actions of Bernanke and Richeliou.  The most striking parallel is that the great project of the Enlightenment, the encyclopedie, has been duplicated in our time with wikipedia.  Unfortunately, should the parallel continue (and there is no reason at all to suspect that it will not), the mobs, the guillotines, the pitchforks, and the reign of terror come next.  It was, after all, a drought and the failure of price controls on bread that sparked the revolution.  Uncanny...

Blizzard_Esq's picture

The revolution was long in coming from economic depression, endless wars, and higher and higher taxes....

seek's picture

They (most likely ICE/DHS) could mess with the DNS, but ZH relocated their servers outside the country a few years ago, so they'll be slightly harder to kill.

For websites that might get disappeared I suggest a backup link direct to to the IPs. In ZH's case, those are and (at the moment, it pays to check to make sure they've not changed.) They do a 302 redirect right right back to the name now, but hopefully should something happen they'd change that to point to wherever they're working.


Yen Cross's picture

Z/H will " NEVER be shut down"!  TOO many smart , [ carbon based' proxy servers] ;-]

Go Tribe's picture

At that point, Tyler Durden reveals himself to be a muslim, and all is forgiven.

Peter Pan's picture

Printing articles and opinions is much more benign than printing money.

MountainGreenhouse's picture

What topic(s) are you trying to bury, you have sparked my curiosity now.

lemonobrien's picture

all the topics are the same too; wondering which shoe wil drop first, or all at the same time. i think the world is in some strange equalibriam where everyone prints and tries to continue with the past. 

falak pema's picture

you make ZH sound like porn. But it does lack editorial focus. C'est la vie, nobody is picture perfect.

Its an unending flow of thoughts, not all of it relevant. But relevance is itself a subjective viewpoint and perspective.

I like the exuberance of irrelevant thought. Its better than the exuberance of financial malinvestment or military mayhem.

Seer's picture

"editorial focus"

You mean "censorship?"

LULZBank's picture

Nippon no economic Harakiri Bitchezz!!

Irelevant's picture

Exponential growth in the news cycle. Soon it will be the 1 hour news cycle!

Peter Pan's picture

I wonder what ill happen when high frequency news meets high frequency trading.

Michael's picture

The commenter's tell me they love it when I call them out on the shit.

We aren't called Fight Club for no reason.

A Lunatic's picture

This is nothing a mass die-off, followed by a beer summit can't fix.

Peter Pan's picture

If Japan wants to keep those disputed islands it should build a faulty nuclear power plant there.

Yen Cross's picture

 It's not about the rocks in the middle of the Ocean!  It's about control of shipping lanes that service international ports.

Schmuck Raker's picture

I thought it was oil/gas in the area.

Cosimo de Medici's picture

Law of the Sea and the ability to enforce territorial limits.

Fish, oil, gas.

Then there's the traditional pissing contest amongst "friends".

Odds favor shots being fired---at sea or on land---within a week.  Given the Chinese propensity to copy others, I'm guessing a slain Japanese diplomat.  Hope not.

JamesBond's picture

china will send some half-water logged fishing boats into japanesae territoryial waters to piss them off in an effort to save face.  that will be the end of it.


Seer's picture

You mean they have some that are That seaworthy? </sarc>

Ineverslice's picture

Ramone-san Bitchez! 

Gambatte Nihon!

booboo's picture

younger Japanese are some weird motherfuckers now, you think our kids live in a fantasy land? Personally I don't think they have a chance, poor bastards don't have a clue. They will be assimilated into the Asian blob after the coming BIG war.

The Shootist's picture

I'm disturbed by most of the anime and Chinpokemon that comes off that island. If the Chinese are smart, they'll at least use the Japonois for their technical know how.

John Wilmot's picture

East Asia of course...and don't forget comrade, Oceania has always been at war with East Asia.

kito's picture

One doesn't need to be a savvy investor to know spending wayyyyyyyyyyyyyyyyyyyyyyyyyyyyyy more than you earn is a formula for disaster............

Seer's picture

And definitely not as a policy (long-term)! (obviously you can spend short-term if it will provide a positive return)

JohnKozac's picture

Time for Japan to start a war to distract their Sheeples.

LongBalls's picture

The U.S. banking cartel have taught them well.

matrix2012's picture

but sir please make sure that you'd picked the right 'fighting partner'... otherwise it's just a harakiri!

sunny's picture

Folks have been predicting the collapse of the Japanese system for years now.  Every 6 months or so another well known analyst will tell us that Japan is on its last legs.  One of these decades they will be right.  I for one will believe it when I see it.


Seer's picture

"I for one will believe it when I see it."

What, someone being right?, or travel to see the carnage yourself?  And if you did travel, would you really know if you saw it?  And if you didn't see it then does that mean that it couldn't happen?

FUCK!  I'm tying to figure out who it is that's going to provide THE inside skinny here!