Those who support this argument claim that, when the public merely acknowledges the possibility that the Bank may register losses -- even if such a thing does not actually happen -- the yen will collapse and Japan's economy will experience hyperinflation. 12 However, if this argument is valid, why is the collapse of the yen or hyperinflation not happening now?
I mentioned already the large decline in overall Target balances, and it is important to add here that this improvement has materialised also for Germany: the Target claim of Germany has fallen from a peak of 760 billion euros in the middle of last year to about 590 billion euros last month. This is a decrease of 170 billion euros or 22%.