John Mauldin, founder of Mauldin Economics and the Front Line Thoughts newsletter, say's that Japan is a nation that he believes is embarking on a desperate course of devaluing its currency to save its own life.
"The Japanese are in a situation where their only real path out (of a shrinking economy) is to devalue the Yen," "This is a country that is going on sale."
In fact, he's not only predicting the Dollar/Yen will slump to 200 versus the U.S. dollar in the next 5 years, he says he is planning to hedge his entire mortgage to Japan's weakening currency in hopes of paying for his new Dallas apartment.
"The country is dying. People are retiring," he says, adding that by the time "Abenomics" has run its course, "you'll be able to buy a Lexus cheaper than a Kia."
Further complicating their comeback is what he calls the "Demographics of Doom," which highlights the growing ratio of the country's retirees compared to those actively working.
"When you're at debt-to-GDP of 245% you're beginning to run up against your limit to borrow money at rational interest rates," he says, defending the country's decision and course, yet he's also certain that "it doesn't end well."
You know , it seems that traffic is down of late and has no chance of returning to old numbers.
The country is not retiring tomorrow - it takes years to work that all out, in various different stages. I don't believe the Kia/Lexus comparison. They may be forced to open up there borders to foreigners, I'm not an expert on this subject. I think this is a fear tactic. Japan needed a jolt and they got it and should last for several years, but after that I don't know.