Originally posted by Metal BrainBut it's not contrary to what a meth addict does.
Japan's debt is at insane levels, yet the USA owes Japan over 900 billion. Borrowing and lending at the same time?
Isn't this contrary to common sense? Can anyone explain this so it makes sense?
Originally posted by TeinosukeYou are making perfect sense unless the goal is to put the most of the people in both countries into economic slavery.
So why don't the US and Japan come to an agreement to wipe out each other's mutual debt? They'd eliminate future interest payments, and surely that would make the economic future a lot brighter for both countries. Who's going to lose?
Originally posted by Metal BrainPerhaps because the yield of US bonds is higher. Perhaps for some other reason. Perhaps because it's a dark sinister conspiracy by the zionist freemasons of the Bilderberg group.
Here you go kazet.
Explain why the Japanese government holds US bonds while they are deep in debt themselves.
Originally posted by KazetNagorraHow could the yield of US bonds be higher when they are at AAA credit rating? Japan's debt is too great for the risk of default to be less. If you can prove me wrong please do so.
Perhaps because the yield of US bonds is higher. Perhaps for some other reason. Perhaps because it's a dark sinister conspiracy by the zionist freemasons of the Bilderberg group.
Originally posted by Metal BrainFor nominal bonds it's probably inflation expectations. Check Japan's inflation rate.
How could the yield of US bonds be higher when they are at AAA credit rating?
Originally posted by PalynkaI don't buy it.
For nominal bonds it's probably inflation expectations. Check Japan's inflation rate.
There are many reasons why it may be useful to have both debt and savings at the same time. Liquidity, diversification, etc.
Originally posted by KazetNagorraI don't understand them either.
I'm not sure if I understand these figures properly but they seem to suggest that the yield on Japanese bonds is lower.