Didn't the Japanese central bank do the first package of purchases which was labeled quantitative easing? I'm not overly educated on the Japanese situation. It seems to me that the culture in Japan is a saving culture which the Japanese couldn't fix even if they were paying people to take on debt. The debt culture has completely worked in the USA.
You do realise that as the government debt increases in the USA, you need more money to support it? Where would this continuously increased amount of money come from if it comes from the savers of the world? The only way to support the ponzi scheme is to fund it with a central bank. It is a ponzi scheme because to pay off the old debt, they use new debt. They pay off the old creditors with money from new creditors. It gets increasingly worse with interest payments which will have to increase to encourage new investors until the scheme justs collapses.
You do realise that as the government debt increases in the USA, you need more money to support it? Where would this continuously increased amount of money come from if it comes from the savers of the world? The only way to support the ponzi scheme is to fund it with a central bank. It is a ponzi scheme because to pay off the old debt, they use new debt. They pay off the old creditors with money from new creditors. It gets increasingly worse with interest payments which will have to increase to encourage new investors until the scheme justs collapses.
some of the best work i've seen on Japan comes from Kyle Bass and Hugh Hendry.
sorry, my thoughts are coming in spurts this AM. another huge source of funds is the stock mkts of the world. if we do a Phase 2 down header like the head and shoulders formation of the last 11 yrs suggests, all that money will flow into safe havens of which the UST's are a debatable one. thats what Depressions do.
