The crisis facing the yen stems from a confluence of factors that have pushed the Bank of Japan into an economic policy corner. With a debt-to-GDP ratio of over 260%, among the highest in the world, Japan has been effectively locked into keeping interest rates at ultra-low levels, near zero, for years.
The central bank is the engine that powers the largest government in history. And things won’t change until people are “generally and radically instructed” as to the cause and consequences.
Schiff draws attention to the Federal Reserve s monetary policies as a key driver of the potential crisis. He argues that the central bank s continuous injection of liquidity into the financial system, combined with historically low interest rates, is leading to an erosion of the US dollar s value.
Schiff, who predicted the 2008 crisis, has called for structural reforms that will encourage investment and job-creation and reducing the reliance on debt to fund government spending