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Meanwhile, In Japan
Lost in the shuffle Tuesday was more than $700 billion in additional stimulus out of Japan, where po
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Japan could just monetize their debt.
They are very close to it. But they refuse to publicly acknowledge the reality. I wish the MOF would just replace debt held by the MOF with zero coupon perpetuals. Why, they could even add a call feature. Faces saved all around!
In many ways, has been a reliable harbinger of economic and social (like young people eschewing cars or splashy brand name apparel) changes which slowly spread throughout the world. This is another one.
The naysayers of the go-to campaign, of which I have yet to meet one, must have a very different perspective from mine. Excess mortality in Japan is negative this year, no mean feat in the fastest ageing society in the world, with combined deaths from all respiratory illnesses (including Covid) way down on the average from the past few years. In the context, nudging people to get out and about seems like an extremely sensible and worthwhile exercise. Plus, on a personal note, having the chance to see some of the sights of Kyoto without the usual crowds has been wonderful.
Yeah, even conceptually, inflation spiking from canceled the debt seems unlikely. I am less clear on distortions in the equity market if they keep on bidding like this.