Similarities/Differences Between Japan of 1990 and U.S. Today (National Inflation Association Video)

Will the U.S. experience hyperinflation or deflation from here? The National Inflation Association thinks hyperinflation. They put out an interesting video explaining Japan's lost deflationary decade(s) and showed similarities and differences between "Japan of 1990" and the U.S. today. For example, the Japanese Government borrowed from its own citizens who saved their money, while the U.S. borrowed "$4 trillion" from foreigners and "$1 billion" from Japan", the narrator said. U.S. citizens are starting to save though. The Nikkei 225 (Japan Stock Index) peaked in 1989 at 38,900 and troughed in 2008 at 6,900 (-82% in 21 years). In 2008 it revisited the 2003 AND 1982 lows. See my post from 3/2009 with a long-term Nikkei chart. Deflation and unemployment were so bad in the 1990s that the Bank of Japan lowered rates to 0% in 2001. The Nikkei then followed the U.S. leverage bubble/bust and Yen carry trade/unwind. Which will it be, chronic deflation (Gary Shilling), hyperinflation or stagflation? Watching $TLT, $GLD and $SLV.

Check out this post from June 28: Japan Public Debt 2x GDP With Deflation Threat (Nikkei charts, Al Jazeera video). If you want to monitor Japanese Government bond yields with charts I threw up a Bloomberg list with links here. Have fun.

h/t zero hedge

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