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Japan has officially reached the end game for central bank policy.

As I laid out in my bestselling book The Everything Bubble: The Endgame For Central Bank Policy in 2017, Japan is the grandfather for monetary policy insanity. The Fed first cut rates to zero and launched large-scale Quantitative Easing (QE) programs in 2008. The Bank of Japan (BoJ) introduced this insanity in 1999 and 2001 respectively.

Since that time, the BoJ has effectively nationalized Japan’s entire financial system. Today the Bank of Japan:

1. Owns over 50% of Japan’s debt.
2. Is the largest shareholder of Japanese stocks in the world.
3. Is a top 10-shareholder in over 90% of the Nikkei 225.
4. Has a balance sheet that is larger than the GDP of Japan.

Put simply, the BoJ is where the Fed, the European Central Bank (ECB) and every other major central bank will be in a few years. As such, it serves as a glimpse into the End Game for everything the Fed and its colleagues are doing.

The end game for this monetary experiment?

The central bank must choose between turning its currency into confetti… or losing control of its debt markets. At the moment, the BoJ is trying to decide which to go with.

The yield on the all-important 10-year Japanese Government Bond has EXPLODED higher. If this continues much longer, Japan will be insolvent.
 

The flip side of this is the Japanese currency: the yen… which is sitting on the ledge of a cliff. This this final line of support goes, the Yen will have erased 40+ years of strength.
 

Small wonder that gold and other financial assets that CANNOT be printed are exploding higher: investors are looking for an escape from the current debt-based fiat financial system.

We have a small window of time to prepare for this before these same issues come to the U.S.’s shores.

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