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Valued Client,

5-10 minutes prior to the 11AM EST start time today please dial:

(Toll Free) or (Direct)

Conference Code: 337697#

Materials: "JAPAN'S DEBT, DEFICIT AND DEMOGRAPHIC RECKONING" 

To submit questions for the live Q&A, please email

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"JAPAN'S DEBT, DEFICIT AND DEMOGRAPHIC RECKONING"

"I can take pot or leave it. I got busted in Japan for it. I was nine days without it and there wasn't a hint of withdrawal, nothing."
 -Paul McCartney 

 

If the quote above from Paul McCartney is accurate, he cured his dependence on an illicit substance after a visit to Japan. The question as it relates to the Japanese in 2012 is whether the Japanese government can cure their dependence on debt to sustain their economy.

On Friday, March 2nd, 2012 at 11am EDT, the Hedgeye Macro Team, led by CEO Keith McCullough, Director of Research Daryl Jones, and Senior Analyst Darius Dale will be hosting a conference call to update our investment view on Japan with a 75+ page presentation. Please contact if you do not currently subscribe to our Macro vertical and would like to trial our product and receive the materials.

Topics will include:

  • Accelerating debt maturities - In the context of credit default swaps on Japanese government debt doubling since we introduced our Japan's Jugular thesis on October 5, 2010, a cascade of maturities in 2012 - specifically March - increase the probability that Japan's sovereign debt market comes under pressure over the intermediate term.
  • Long term demographic headwinds - Japan has the oldest population in the G-7 and by some estimates, based on current demographic trends, the Japanese population will decline by more than 30% over the next 40-years. The headwind of demographics has specific implications for government entitlement spending and GDP growth, both over the short and long term.
  • Government policies gone awry - Decades of Keynesian economic policies have left Japan with a structural deficit of 8-9% of GDP and a revolving door of political leadership. Current policy proposals on the horizon actually appear poised to push Japan closer to the abyss of debt and deficits by structurally impairing economic growth incrementally.

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