This week, the rise in JGB yields and the decline of the yen accelerated (note: the JPY chart is on an inverted scale). There is no doubt that there is a crisis developing.

Ever since the Fed raised interest rates, the Bank of Japan's monetary policies have become exposed as being out on a limb. The BOJ has been pursuing QE since the year 2000, and in the process has accumulated nearly 60% of its own government's debt. Relative to the size of the economy, this debt at over 260% of GDP is the highest of the world's advanced nations.