Here’s a suggestion for the government of Japan: maybe, just maybe, dial back the borrowing and spending spree and the bond markets might not be so jittery.
Japan is running low on options to fight a bond rout that could push debt financing costs above government estimates, leaving Prime Minister Sanae Takaichi’s ambitious spending agenda hostage to forces she can’t control.
The global bond selloff has found its epicentre in Japan with the benchmark 10-year yield on the brink of hitting 3% for the first time since the mid-1990s, as investors grow increasingly nervous about the country’s towering debt pile and inflation risks stemming from the Middle East war.
Fiscal bukkake?
3% ? On a 10-year investment? Is the end of the world?
Add this to the lists of things I can’t understand. Massive government borrowing and spending? That I understand is a huge problem.
Meanwhile … the FED continues to intentionally STRANGLE the US economy … to SAVE the US economy with high rates.
For years, Japan issued bonds with virtually no yield, which let it to run up a debt of 237% of annual GDP. 3% may not sound like much, but over time it would send debt maintenance costs skyrocketing.
Lending money to any government is a risky proposition.
But, but, but … Canada has a AAA+ credit rating!
And I’m still not lending them money.
Exactly right Dennis. I also do find it rather amusing (I say “amusing” as a coping mechanism, because in reality, it’s bloody infuriating) that leaders across the planet never ever seem to entertain the idea of gee, I dunno, maybe, possibly ……um……. RAMPING DOWN ALL THE ******* INSANE GOVERNMENT SPENDING as a solution to the massive debts hanging like a Sword of Damocles over civilization itself. None of this is going to end well.
None of this is going to end well.
But end it will. It is simply unsustainable. Can’t come soon enough, IMNSHO. And immediately after that, the revolution.