Q. If Japan has a financial collapse, what will happen to its government bonds?
A. Please do not worry.
Source: Japan Ministry of Finance
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..edit, very late to the party...
Wolf or one of other contributors wrote about this last year, no?
It's funny how this gets ridiculed more than everyone else's approach when in fact there is no difference. As many have said Japan may be (relatively) better off because most bonds are domestically owned.
You may want to double check that particular quite popular conventional wisdom misconception:
Source: Japan MOF
But what about Japanese banks and life insurers?
I'm a total novice at high finance, but if by "retail investors" this means only non-Japanese buyers, at 35 trillion yen, it still represents less than a fourth of the total outstanding JGB...WAY less than any other developed country.
This, from the same people who "handled" the Fukishima disaster.
How you pay? How you pay?
"Don't worry, subprime is contained"
That's why I prefer government bonds over gold.
Gold is backed by nothing (I heard it on TV!) while government bonds are backed by the full FAITH and CREDIT of the government.
They have always been faithful (to their own interests) and we know their credit is good, don't we?
If Bass is back out on the streets talking about Japan it could be getting interesting. His analysis is spot on but timing is the blind spot. Tied to the Grexit, Japan will flame out and American geopolitics will become the lynch pin in an asian meltdown. The middle east is about to go boom and europe is soon to pop. All three at once and China gets to sit back and watch, we are fucked.
Forex crisis - South Sudan's oil shutdown has claimed the fortunes of Kenya's medium-sized regional airline, Jetlink Express, which was forced to ground nearly eight aircraft for up to four months over a US$2 million financing crisis.
The Fed will buy the JGBs if necessary and the BoJ will buy the the USTs too all with newly created dollars and yen.
So what happens when the Fed has the entire worlds's toxic assets on it's books? My head is exploding.
Eat, drink and be merry, for tomorrow we die.
Correction, tomorrow you get cancer, then the medical industry bleeds you and your medical insurance of every last dime for 3-5 years...then you die.
Is it a repeat or a new message?
lol thanks for the reminder: http://www.zerohedge.com/contributed/2012-09-24/japanese-ministry-financ...
So more action coming about?
"If you're going to panic, panic early."
Please consider it is already too late to worry.
PS: I bet the Fed owns a shimaload of Japanese debt.
"Please do not worry." Mothra is aware of problem and will death ray it.
Best quote of the year. "Please do not worry" that's the best! I'm changing my company slogan! Stealing that bitch out right.
Wait is that the greatest Haiku ever?!? I want to hear it in Japanese.
Japanese Official Advice:
In case of panic, do not panic.
Most likely is for domestic rates in Japan to not rise much, but for a sharp drop in the yen.
Don't worry y'all. You can eat the bond certificates, another advantage over gold!
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