2 thoughts on “Japan National Debt Rises To ¥1,053,357,200,000,000

  1. Thanks to Fukushima, Japan is finished, but nobody dares to say so. They always kept a strong fiscal house……but can no longer do so, and their national debt is growing to unsustainable levels.

    The same story with most of the western world……debt, and more debt.

    Now, Greece’s situation has moved out of control………nothing can save it, but the debt funded stock markets continue to climb…happy days are here again.

    From the Guardian…….
    http://www.theguardian.com/business/2015/may/08/tsipras-happy-ending-greece-crisis-talks-payment-to-imf-nears

  2. For some reason, investors are dumping German Government bonds at record rates……..

    A blurb from today’s European section of Guardian:

    It’s a head-scratcher. Why have investors suddenly decided to dump German government bonds? The sell-off, seemingly on no news, has been extraordinary, affecting the entire European bond market. Yields, which move inversely to the price of the bond, briefly hit 0.8% on 10-year German debt on Thursday. Then they fell to 0.57%, but even that represents a surge from 0.1% only a few weeks ago.

    A glib explanation is to say that the ultra-low yields were wrong in the first place. Deflation is a worry, not a probability, so isn’t lending to any government for a decade for a near-zero return a surefire way to destroy your capital? But that doesn’t explain the suddenness of the move: the market in German government debt is meant to be deep, liquid and populated by grown-ups.

    Greece doesn’t offer a plausible answer. Grexit – if anything – seems more likely than it did a month ago, in which case you’d expect a rush into German debt. “Supply indigestion,” ran another idea – in other words, lots of European governments issuing bonds, trying to take advantage of the European Central Bank’s bond-buying programme. Possibly.

    But what will happen when bond yields start to rise for reasons that are easier to explain – for example, a return of modest inflation and higher interest rates. On the evidence of Thursday’s brief wobble in stock markets, it won’t be pretty for share prices.

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