Despite decades of incompetence Japan is hellbent on continuing its march towards bankruptcy
BOJ May Increase Government Bond Purchases as Aso Eyes Stimulus - " The Bank of Japan may step up purchases of government bonds as Prime Minister Taro Aso prepares a third stimulus package to ease the nation’s recession.
The central bank will increase its monthly government debt purchases to 1.6 trillion yen ($13 billion) from 1.4 trillion yen, economists said. The bank yesterday said it may provide as much as 1 trillion yen of subordinated loans to banks to replenish capital depleted by falling stock prices."
Faced with an aging population and a diminishing saving rate Japan is ever so steadily approaching the end. It is no wonder that Japan's former finance minister was publicly drunk. The only way that Japan can balance their budget is by borrowing more money and continuing their death spiral. As legitimate lenders flee the government will increasingly have to buy their own bonds. Of course the idea of buying your own bonds is ridiculous. It's like saying you can stay alive forever buy eating yourself. Whether Japan ends in default or hyperinflation I cannot say. I hope for default.
