Japan Bears Bet on Abe Victory

An election sweep for Japanese Prime Minister Shinzo Abe this weekend looks like a safe bet, but some are betting that the consequences for Japan could be calamitous – a collapse in the yen and uncontrolled inflation.

The continuation of ‘Abenomics’, a program of money printing and debt-funded spending to lift Japan from two decades of deflation and stagnation, is, they say, not just failing, but heading for disaster.

“The endgame of this could be an inflationary depression,” said Arne Espe, vice president of mutual fund portfolios at USAA in San Antonio, Texas.  For Espe, it could nevertheless be a profitable endgame.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.