Japan has a major debt problem, but most is held domestically; however, the primary risk for Japan is geopolitical (squeezed between China economically and US for security) and demographic (aging, declining population), which creates an impossible trade-off between satisfying China and the US.
causalpending
Speaker
Felix ZulaufEvidence Quote
“The problem that I see for Japan is they have the demographics are are quite negative and go further negative and they are uh geopolitically, they are in a sandwich between uh China that is very important for their economy and uh the US, which is very important for their safety. You know, they are in between and I think they could please both by letting the yen rise, but for that they have to intervene.”
Created: 8/12/2026, 6:25:56 PM
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