Japanese Stimulus

The Japanese are getting hammered by the strong Yen. I shutter to think about the prospect of the Japanese government borrowing money for a second stimulus program to offset the anticipated decline in exports. The Japanese debt as a percentage of GDP is already at 200%. With an aging society, costs associated with social programs are going nowhere but up.

Some predict that the Japanese cumulative national debt will exceed 300% by the end of the decade. A stimulus program will make this milestone happen sooner.

I continue to wonder if China is purchasing Yen using surplus American Dollars thus driving up the value of the Yen. This might make it very hard for the Japanese government to intervene through open market operations.