From Zero Hedge post titled "Why "This Time Won't Be Different" For Japan In Two Charts" (2/6/2013; emphasis is mine):
...The problem is what happens once said rotation [from JBG to shares and equities] and begins?
Well, the clock begins ticking. Because with a debt load of some 230% of GDP, and with debt that is 2000% of government revenue, about five times more than the second highest (Greece), a simple doubling of average interest rates means half of all government revenues goes to pay interest. Double rates again, and it's game over for the funding side of the Japanese P&L statement, as all inbound cash will have to pay down interest, pushing Japan into the long-delayed hyperinflationary spiral.
And, by the way, none of the above is new! In fact, everything said previously has been well-known to every Japanese PM, and central banker for the past 30 years. It is also the reason why nobody has attempted the kind of ultimately suicidal move that Abe is now trying.
The good news is that it will ultimately be the bond market which puts an end to this latest bout of insanity before it is too late. Unless of course, we get bad news, which in Japan will means 2% inflation... then 12%... then 22%.... then 222% and so on.
By that point every central bank will be openly monetizing not only its own but everyone else's debt too, as the full 1930s rerun, which most certainly included full-blown currency war just before full-blown trade war erupted, unfolds.
And as everyone knows from history, both of the above metaphoric wars in the 1930s culminated with a different war. A real one.
Yup. Kyle Bass has also said as much and more.
Japan's Prime Minister pork-cutlet-curry Abe said in the National Diet session on February 7 that his pride and confidence were shattered to pieces when he had to resign in one year the last time around. I guess the now-confident Abe wants something that he can claim as his lasting legacy. Good or bad is not the point.
One of my Japanese twitter followers said Mr. Abe may be thinking that 2% annual inflation will be linear. Well, he's a poli-sci major. I'm guessing the rules of mathematics apply differently in politics.
The last time Japan's finance minister (Korekiyo Takahashi) inflated the hell out was right before the start of the second Sino-Japan war which was the effective start of World War II in the Far East.