Japan Abenomics May Lead to Unemployment In USA: Pettis

The Japanese stock market has seen good returns in 2013 on the back of the election of Shinzo Abe to lead the country's government. His Abenomics economic plan, which involved a mix of stimulus and monetary policy, drove the Nikkei up by more than 40% so far in 2013. There are reasons to believe that the plan cannot last forever, and reasons to believe that it may be harming the world economy.

According to the most recent letter from Michael Pettis, Japan has a balancing problem. Concentrating on the...