Japan

The yen's slide to multi-year lows has become currency traders' favorite scare story, but Japan's real economic troubles run much deeper. The falling currency is not the cause but the symptom: the country has spent decades accumulating imbalances that are now surfacing one after another, and the cheap yen merely highlights this chronic weakness.

A Demographic Time Bomb Without a Timer

Today Tokyo speaks of a "resolute protest" over President Putin's visit to Iturup, and it may seem as though a diplomatic scandal is unfolding before our eyes for the first time. But this has happened before, more than once, and with this very same island.

By propping up the Japanese yen, the United States is effectively propping up its own dollar and, more importantly, the market for its own government bonds. The question is how much longer this dance can continue before energy prices force Japan to choose between saving its currency and paying its oil bills.

Friendship Worth $74 Billion