IT’S THE EUROZONE THAT’S TURNING JAPANESE…OR MAYBE WE ALL ARE

"Earlier today the headline *GERMAN TWO-YEAR NOTE YIELD DROPS BELOW JAPAN’S FOR FIRST TIME* hit the wires and, yes currently sitting at below 0.1%, it is indeed very close to turing negative. As illustrated below it took 20 years for the German Bund to go Japanese so forgive me for trying to make a comparison.

German 2 year yield drops below Japan’s for the first time

Much has been written about the US Economy going Japanese and there are indeed some worrying signs. And for all the Bernanke bashing, that is one thing he really understands and will fight aggressively.
Unfortunately, Euro zone policymakers and the German’s inflation phobias are making all they can for Europe to get into an entrenched deflationary spiral..."

at http://pragcap.com/its-the-eurozone-thats-turning-japanese-or-maybe-we-all-are