Monday, January 10, 2011

Japan Joins China to Become a Bagholder for Euro Zone Debt (As If Being US Treasury Bagholder Is Not Enough)

The curse of mercantilism. Japan seems determined to do whatever it takes to cheapen their currency and destroy the wealth of the nation.

Bloomberg reports:

Japanese Finance Minister Yoshihiko Noda said Japan is planning to buy euro-zone sovereign bonds to help support Ireland.

He told a news conference in Tokyo today that Japan will use its foreign exchange reserves to buy the bonds. Japan may buy more than 20 percent of bonds to be issued for the assistance, he said.

Japan plans to reduce the pensions for the retirees in an effort to reduce the deficit. (Why bother?) But it is willing to buy more than 20% of Euro debt to help Ireland.

Where's the outrage in Japan? Alas, the Japanese are the last to take to the streets. "Shoganai" - "can't be helped, nothing we can do, leave it to the fate" is the national character.


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