TOKYO—Japan's $1.2 trillion public pension fund should start selling domestic bonds, and could unload more than two-thirds of its holdings of such debt, the head of a pension-reform panel said Monday.To review, here's the Japanese plan for success:
- Run up a monstrous debt
- Raise taxes and spend all that money and more on "infrastructure"
- Print money at warp speed and buy government bonds, trying to increase inflation
- Hold interest rates on government bonds at ridiculously low levels so that any inflation at all makes them total losers as investments
- Watch your major bond holders sell them and take their money out of the country
- Print more money to buy that government debt as well
- mumble mumble mumble
PS - I'm not sure why Tuesdays have become Japan debt crisis blog post days. It just happened that way.