1. “The World is Becoming Japanese”
By: Severin, Shao, Setola, Shah, Seelam
Group F Section C

2. Japanification
“The world is becoming Japanese” refers to the prevalence of Japanification in other countries
Japanification→ current state of Japan w/ low growth, inflation, and ineffective monetary policy result in a rise of negative yield debt.
Buy bonds → Bond prices ^ → yields become negative→ investors lose

4. U.S Japanification Indicators of US Japanification:
Low inflation rates
FED cutting interest rates to support growth
Still-elevated stock prices

5. U.S. Japanification
Bond yields predicted to stay lower for much longer
Only beneficial for borrowers
Long-term investors suffer

6. Japanification of Europe
Ireland, Portugal, and Spain started to produce negative yields because of borrowing at great costs
Germany sold a 30-year bond at a negative rate for the first time.
The UK pension deficit rose from £2 billion to £51 billion for FTSE companies in July

7. $17 trillion worth of bonds trading with sub-zero yields

8. $7.3 T
Japan
$2.3 T
France
Germany
890.6 B
Spain

9. “The US bond market is no longer the best house in a bad neighbourhood: it is pretty much the only house still standing.”
-The Financial Times