Things are about to get bumpy and you’re not insulated from this, no matter how diversified you are.
The Japanese are big believers in insulating themselves. As a group of islands in the Pacific Ocean, their culture and ethnicity are unique and they’re trying as badly as they can to keep it that way.
Isolation and not being willing to change, though, has come at a cost.
With a population of 126M, the 3rd largest economy in the world is struggling. It is, by far, the most indebted country relative to the size of its economy, with a $13tn national debt.
The U.S., in comparison, owes $29tn, but Japan’s debt/GDP ratio is 266%, which is unprecedented.
The country is a world leader in automation, robotics, vehicles and technology, in general, with 90% of its population residing in cities. The Tokyo metropolitan area is the largest in the world, with 38M residents.
But, it’s also the oldest country in the world, by a mile: 27% of its population is over the age of 65! Think about the fact that 36M human beings are at the age of retirement. The average baby born today in Japan has a life expectancy of 85, the highest in the world.
Japan is old, indebted and shrinking in population, which is a recipe for disaster, as Western European countries have found out (Italy, Germany, France, Denmark, Spain and others).
In the 1920’s, Japanese women gave birth to an average of five children, but since 1974 the replacement ratio is negative. In 2006, Japanese women gave birth to 1.26 children, on average! In 2008, the country’s population officially began shrinking and they have over 2,000,000 people who are over the age of 90, along with 20% of the global population of centenarians.
The situation is begging for a solution, because by 2060, the population of the country will contract by a third, from 126M to 87M!
40% of its younger labor force are part-timers, who are overworked. There are 9,000 corporations in Japan that pay more than 80 monthly hours of overtime, and massive 30+ year-old inexperienced demographics, when it comes to sexual encounters (virgins), who say they have no time for family. This means more debts, government healthcare and social programs are coming, with no way to fund them!
In 2014, the country sold more adult diapers than baby ones. If you’re asking yourself why Japan isn’t letting outsiders apply for residency, work permits or citizenship, it is because they want to remain isolated. But not willing to open up and change has led to this unbearable and unsustainable condition.
Tomorrow, the FED will probably make one of its most bearish decisions, on the face of it, which is to taper faster, so that it can tighten (raise interest rates) sooner.
Tough decisions are a part of life.
Portfolio Wealth Global believes tomorrow is a crucial day for investors, and we’ll be covering the action as it unfolds.
Similarly to Japan, just printing currency and pretending there is no backlash has led America to hyperinflation and something must give, NOW.
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. We are a marketing company. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it.
Please read our full disclaimer at PortfolioWealthGlobal.com/disclaimer