Posted on 10/04/2010 10:02:45 PM PDT by Ernest_at_the_Beach
BOJ cuts overnight call rate range to 0.0%-0.1%
Japan stocks jump after central bank policy move
Nikkei Stock Average up 1.2%
(Excerpt) Read more at marketwatch.com ...
Bernanke calls for tougher budget rules
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Who cares? Who uses Long Distance anymore, anyway?
Gold up $4 on the news...
Japan gov relied on Japanese citizens to buy their Treasuries. Problem is after 20 years of less then 1 percent interest rate savings accounts the Japanese gov can not rely on their citizens’ savings to buy their bonds. Younger Japanese do not save because as far as they are concern life sucks, and as the Japanese get older they stop saving. In other words the Japanese civilians who in the past sacrificed for their nation thru frugality and hope for a better future are starting to become weary and demoralized from two decades of stagnation. When the amount of taxes and money to buy Japanese Treasuries start to decline, it means less money is available to continue the purchase of US Treasuries (Japan is the second largest buyer after China). Due to low interest rates and changing demographics (less kids, more older people) Japan is running out of options. China is more then happy to step in an buy Japanese Treasuries and eventually dominate Japan via finances. If Japan resists by buying their own bonds, then less money is available to buy US Treasuries. Either way, the US will lose. Japan may be the first major power to default and have high/hyper inflation. I think Japanese debt and obligations is about 2.5X their GDP.
Everyone wants a weak currency right now... How low can you go?
LOL!!
I suspect we’re about to find out.
The hard way.
Thank you. Thank you.
That .82 is just to low. My God man.
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