Mr Obama, will continue its monetary easing policy, continue to operate the printing press. This bond has become astronomical Japan worried.
Results of a survey released on Monday showed that Japan government bond market sentiment index is gradually deteriorating due to market fears over Japan after taking office the new Government will take more aggressive monetary and fiscal stimulus measures and lead to lower bond yields sharply.
Survey results show that weekly statistics of Japan Government Bond Index this week fell to-6, last week, the value will be 0, indicate that market confidence in the bonds is deteriorating.
Japan media coverage and, more recently, United States President Barack Obama was elected, Japan had surprised a cold sweat. This is why? Because Mr Obama, will continue its monetary easing policy after the election. Pop said, is to continue to operate the printing press. This bond has become astronomical Japan worried.
Not long ago, Japan a joke widely circulated in the media. Say Kyoto University Professor Shinya Yamanaka in 2012 years Nobel Prize in Physiology Prize, I do not know him after the award, did ask a laureate and award-winning--United States Denis Irwin-Ross and Dan Aykroyd-Xia Puli: United States ready to help Japan solve the national debt problem.
Japan media that ridicule is a reason. The Nobel economics prize on October 15, Japan Government began to deliver up to 722.6 billion yen of "personal treasuries." Received the Japan people long-breathed a sigh of relief, and debt-laden Japan almost no background washed out to the Government. But for the hard start the printing presses, constantly issuing new debt, Japan governments these days have credit went bankrupt.
Japan most financial experts believe that Japan happen, largely due to the "United States big brother".
Japan believes that the history of senior financial sector cane volumes and health, debt crisis on Japan caused by impact, than the second world war. Japan's social structure, values, policies and systems have been flattened by massive debts have distorted, now in Japan if not reinvent, it's hard to have hope.
Cane volumes say is justified. Japan's total debt has now reached 219% per cent of GDP, than European debt crisis of Greece, and Italy and other countries also scary. More terrible is that United States has begun to assist the European States to reduce huge debts, Japan's debt has no interest, and grow at a rate of ten trillion yen a year.
Not long ago, Japan government bonds is very popular with overseas investors "favor", being bought in large quantities in the international market, Japan Government is be happy for quite some time. But a survey report issued by the Agency, but Japan Government cool to feet from scratch.
It turns out that Japan government bonds and therefore was a lot of buying in the short term, because it has become the international financial speculators to bet against the "chips", which is synonymous with junk bonds. Once the speculators to profit off, Japan government bond values will crash more than, beyond redemption.
Not only that, bonds plunge Japan stock market, foreign exchange market, real estate market volume came in, the direct result will be Japan finance bankrupt, government agencies are closed. Japan is sad, the great majority of speculators and United States financial institutions close to the Government.
To prevent debt bankruptcy, Japan Government has modified article 5th of the Finance Act, forcing Japan's Central Bank to buy bonds, and let the printing presses at full throttle. But this is to prevent government departments and halt such as fire engines, ambulances, to maintain the most basic of social functioning. Japan Government it is clear that urgent measures have been normalized.
However, Japan financial experts have pointed out that, in the shrinking domestic demand, exports by Sino-Japanese relations deteriorated sharply reduce cases, Japan is still like thirst, only make Treasury bonds became worthless. Final result is prices, Japan printing presses again go down, I'm afraid the taxi starting price is 1 million yen is also possible.
Japan Government and private research institutions from the "formula" in the devaluation of the Japanese Yen was one of the most effective ways. After the devaluation of the Japanese yen, Japan enterprises to enhance competitiveness in the international market, employment increased economic good investor Japan confidence will also enable them to long-term holding of bonds.
However, this can only be a good blueprint. "The United States big brother" in the case of zishennanbao, are adding horse power operate printing presses. As a "little brother" Japan, banknote printing cannot and dare not more quickly than United States. Dollars more and more on the market, Yen with close ties have "appreciation".
In this way, Japan resolve the sovereign debt crisis the most effective solutions, and has also been blocked. Combined with United States military action at a time, Japan has to cut out hard money, which is causing Japan bonds indicates tired of important reasons. As in cane volumes and health history said, Japan's many crises, in a sense, is in the United States "lick ass" sovereign debt crisis is no exception.
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