I’m going to throw out a question for those of you who are knowledgeable about the bond market (I freely admit that I don’t know diddly):
What happens, once Japan determines that she has a huge need for cash for cleanup and rebuilding ruined areas, and someone suggests they sell off all or part of the approx. $700 billion in US treasury bonds?
That may be a silly thing to worry about but I haven’t heard it mentioned so far. To me, it is a legitimate thing to worry about given Japan’s monetary needs and our exposure.
Serious answer, anyone?
Is that the only thing of value they have to sell?
I read that when they went through their financial crisis over a decade ago, they had their exports (the tv)cars, their manufacturing and were savers. Even though their economy has not come back as fast as they had wished, perhaps because of the politics in deciding the right path to better economic growth; they still are a Rich country.
Ping - See the replied to post. For your consideration.
It will be interesting to see if people like Schiff or Zerohedge address this.