Shinzo Abe is lighting matches near an open gas tank
Scary but true. This guy will produce the 2% inflation rate in Japan because he already looked bad the last time he was the PM and raised rates. He will not renig on his promise. No way. And when he gets the 2%, who in their right mind will hold 10 yr bonds yielding 0.77%.
Inverse JGB etf, JGBS, is a low risk, high reward play. Maybe even the etf with some delta might not be bad to nibble on.
If they completely monetize their debt the yen will be worthless. Japan is in a very precarious position (particularly since the tsunami) as they have to import 100% of their energy needs and almost all other industrial commodities. What's alarming is they realized this economic vulnerability over 80 years ago, and they moved to take control of oil reserves and other commodity production in Indochina, Indonesia and the Philippines. Only the US was able to stop them, and it took a World War. Its a damn good thing they dont play nice with North Korea and China, at least for now.