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The government's mission to erode the value of its own obligations is being heard at...

The government's mission to erode the value of its own obligations is being heard at Japan's public pension fund ($1.2T AUM), which considers cutting its 67% target allocation to government debt. "JGBs were how we made money over the past 10 years," says fund chief Mitani, his eyes clearly focused on other assets - domestic and overseas stocks to name two.
Comments (5)
  • More good news for U.S. equity markets.
    3 Feb 2013, 02:11 PM Reply Like
  • how does it impact EWJ?
    3 Feb 2013, 05:34 PM Reply Like
  • If the Japanese were smart they would buy up trillions of yen worth of U.S. land and real estate in the desert and palm tree cities.

     

    They would also scoop up millions of ounces of gold and silver too.
    3 Feb 2013, 07:24 PM Reply Like
  • You must be young. Japan did buy up vast amounts of the U.S. and lost their butts.
    3 Feb 2013, 08:45 PM Reply Like
  • If Japan's cost of borrowing goes up it will crush the country because even a small increase in interest rates is a lot of money when you're borrowing 230% of your GDP. If investors feel a lack of trust that they will be paid back in money that is worth anything close to the money they lent there will be a mad dash for the exit door and Japan's currency and bond market will collapse. Without funding a country can not carry on daily operations and business will stop. If business stops EWJ will collapse. Kyle Bass, the hedgefund manager recent said that buying Japanese equities is like picking up a dime in front of a steamroller.
    4 Feb 2013, 11:22 AM Reply Like
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