Tuesday, February 5, 2013

Black Swan Capital: Japan, Debt and Currency Markets


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Japan's debt and currency markets are at the mercy of a brazen prime minister and a central bank with a recently eviscerated independence. 
For the first time in over two decades key asset markets in Japan - the Japanese yen, Nikkei, and Japanese Government Bonds - might no longer be a one-way bet.  Prime Minister Shinzo Abe has spoken. His orders to the BOJ could serve to turn around a 23 year-long trend ... in a big way.
 
If so, this turn has only just begun.  Opportunities abound!
The Prime Minister is making bold moves. The Bank of Japan threatened to slow Abe's agenda but a 2/3 majority in the lower house and new leadership appointments in April has given the BOJ little choice but to concur with the whims of Shinzo Abe. 
- Could this be the catalyst that triggers a debt crisis in the third largest  
  economy in the world?    
- How low might the yen go? 
- What are the other global market implications?

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