20 Jul 11
http://www.csmonitor.com/Business/The-Daily-Reckoning/2011/0110/On-the-worthlessness-of-Japanese-government-debt
Japan's debt is at insane levels, yet the USA owes Japan over 900 billion. Borrowing and lending at the same time?
http://www.npr.org/blogs/thetwo-way/2011/07/15/138155724/china-japan-lead-international-pack-holding-u-s-debt
Isn't this contrary to common sense? Can anyone explain this so it makes sense?
20 Jul 11
Originally posted by Metal BrainBut it's not contrary to what a meth addict does.
http://www.csmonitor.com/Business/The-Daily-Reckoning/2011/0110/On-the-worthlessness-of-Japanese-government-debt
Japan's debt is at insane levels, yet the USA owes Japan over 900 billion. Borrowing and lending at the same time?
http://www.npr.org/blogs/thetwo-way/2011/07/15/138155724/china-japan-lead-international-pack-holding-u-s-debt
Isn't this contrary to common sense? Can anyone explain this so it makes sense?
20 Jul 11
Originally posted by KazetNagorraHere you go kazet.
Bond holders don't have to be governments now do they?
http://www.reuters.com/article/2011/03/15/usa-geithner-treasuries-idUSWEN959720110315
Explain why the Japanese government holds US bonds while they are deep in debt themselves.
21 Jul 11
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?
Our interests and the interests of the elite are two different things.
Makes you angry doesn't it?
21 Jul 11
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.
http://www.reuters.com/article/2011/03/15/usa-geithner-treasuries-idUSWEN959720110315
Explain why the Japanese government holds US bonds while they are deep in debt themselves.
21 Jul 11
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.
It looks like it is a conspiracy. Any investment adviser would tell an individual to pay off their own debt first. When the extremely wealthy choose to create perpetual debt by having countries loan to each other instead of spending it to stimulate the economy what other conclusion can you come to?
Here is another oddity for you to ponder.
http://pierrelegrand.net/2009/06/14/[WORD TOO LONG].htm
21 Jul 11
1 edit
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?
There are many reasons why it may be useful to have both debt and savings at the same time. Liquidity, diversification, etc.
21 Jul 11
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.
It doesn't make sense to have such high debt to begin with, let alone lend at the same time. Show me the details.
21 Jul 11
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.
http://www.bloomberg.com/markets/rates-bonds/government-bonds/japan/
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
It makes little sense even if it is true. Why would anybody lend to Japan if rates were so low and they can lend to another country?