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Japan's Not Out of the Woods Yet

On Nov 18 07:38 AM Mad Hedge Fund Trader wrote:

> kji The collapse of the Japanese government bond market has long
> been the holy grail of the international hedge fund community.

I think what most people underestimated was the level of collaboration between banks/insurers etc and the government. As Japan's savings rate was high there was enough domestic capital to finance the debt load, in most other economies this money would not necessarily have been pushed into the government debt market but in Japan it was decided to use the savings in order to keep rates down. 'You help us out by funnelling those savings and we'll help you out in some other way'
Now imagine what happens to all those banks/insurers once interest rates spike and the value of their bond holdings goes down.
Nobody knows when it will happen but I can see the BOJ order several dozen helicopters by that time.

Japan's Dual Currency Proposal: A Slippery Slope

Terrible proposal, you only need to look at the most recent 'stimulus spending' to see how disastrously allocated it had been. Why does none of these Keynesians EVER look at the debt side?

You can cheat your maths teachers but not maths principles.

What Are the Chances Ukraine Just Hit the Second Great Depression?

As for unemployment figures: How many people are nowadays federally employed or kept artificially in employment in comparison to then?