I joined Dan Cofall on The Wall Street Shuffle last night.
We discussed Japan’s wild stimulus plans from government and the impact of its super dovish Bank of Japan governor nominee, Haruhiko Kuroda. While we agreed that it’s hard to know when unsustainable borrowing and debt monetization will cause a collapse, Dan offered that a widely accepted rubicon is when a government needs to borrow just to pay the interest on its debt. Hard to disagree with that.
We also looked at China’s rising assertiveness and how it could impact markets if it steps over a line and forces the United States to honor its treaty obligations to protect Japan and South Korea.
You can hear the 14-minute segment via MP3.
