Economist Peter Schiff said Saturday that Japan’s mounting debt and bond market pressures could spark the next global financial crisis, warning that turmoil in Japan could spill over into U.S. financial markets.
Japan Could Be the Catalyst
Japan’s debt and currency problems have reached a point where the country’s financial system could unravel before the U.S., according to Schiff, making it the trigger for a broader global financial crisis rather than another regional downturn.
Speaking on The Peter Schiff Show Podcast, he said the yen’s slide to a 40-year low against the dollar and rising Japanese government bond yields show that years of artificially low interest rates have left Japan’s policymakers with few options to stabilize the economy.
“The Japanese crisis may be the catalyst for our crisis,” Schiff said.
