JGB Madness

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Japan is losing control of it’s huge bond market.

They’ve basically started unlimited bond purchases in the open market to settle yields at policy levels. FYI, this is pretty unprecedented. WSJ and Bloomberg have also reported it. You can’t make this shit up.

Observers might think this helps, but I think this just exacerbates the problem and opens the door that leads down the path of more madness.

Maybe I’m just a cynic, but I just don’t get or support their Krugman-esque policies. It doesn’t make any sense to me.

Can someone please help me understand why this is okay in Japan and how Japanese people view these crazy policies? To me, it just looks like the BOJ is monetizing it’s own debt and is on the path to eventual, major currency depreciation.

Perhaps when the SGD/JPY goes to 200 I would be able to fully appreciate what the …

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