"Japan is on an
unsustainable path of a strong yen and deflation. The unprofitability of
Japan's major exporters and emerging trade deficits suggest that the end of
this path is in sight. The transition from a strong to weak yen will likely be
abrupt, involving a sudden and big devaluation of 30 to 40 percent. It will be
a big shock to Japan's neighbors and its distant competitors like Germany. The
yen's devaluation in 1996 was a main factor in triggering the Asian Financial
Crisis. Japan's neighbors must have a strong banking system to withstand a
bigger devaluation of the yen."
http://english.caixin.com/
http://english.caixin.com/
