These trends include but are not limited to an aging population, inflation goal, debt to GDP, revolving door at the Ministry of Finance, and QE efforts by the BOJ.
The debt to GDP ratio is over 230%. Tax revenues are shrinking and The Bank of Japan (BOJ) has been enabling this for years with low interest rates, but now that the BOJ is currently targeting 2% annual inflation, according to Governor Haruhiko Kuroda, the interest expense is may soon increase and be more than what the government takes in from revenues.
In addition to the market worrying about the BOJ and the debt crisis, the investment community also seems to be worried about the Yen. Investors seem to be scrambling to get out of Yen and into more productive currencies. The market has seen some massive momentum as of late. From low to high, the USD/JPY has rallied 30% recently, but this move could be just the start, as the pair formerly traded around 250.
