Tuesday, December 10, 2013

If It's Tuesday, This Blog Post Must Be About Japan's Debt Crisis

This can't be good.
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:

  1. Run up a monstrous debt
  2. Raise taxes and spend all that money and more on "infrastructure"
  3. Print money at warp speed and buy government bonds, trying to increase inflation 
  4. Hold interest rates on government bonds at ridiculously low levels so that any inflation at all makes them total losers as investments
  5. Watch your major bond holders sell them and take their money out of the country
  6. Print more money to buy that government debt as well
  7. mumble mumble mumble
  8. Win!
PS - I'm not sure why Tuesdays have become Japan debt crisis blog post days. It just happened that way.

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