Thread on Japan
1/ Let me simplify the issues facing Japan #BOJ & why I believe people need to be paying attention: these are rough estimates:
*Japan's debt > $10 Trillion (in US terms) of which BOJ owns 40%+
*Japan Debt/GDP is >2.5x(largest of any developed nation)
@pboockvar
1/ Let me simplify the issues facing Japan #BOJ & why I believe people need to be paying attention: these are rough estimates:
*Japan's debt > $10 Trillion (in US terms) of which BOJ owns 40%+
*Japan Debt/GDP is >2.5x(largest of any developed nation)
@pboockvar
2/
*Japan is the largest foreign holder of US Treasuries (over $1 Trillion)
*Japan's Core CPI for January just came in at 4.2% (includes energy which is a big import for them) a 41 yr high
*Japan exports autos/auto parts/machinery/electronics etc & relies on China/US as buyers
*Japan is the largest foreign holder of US Treasuries (over $1 Trillion)
*Japan's Core CPI for January just came in at 4.2% (includes energy which is a big import for them) a 41 yr high
*Japan exports autos/auto parts/machinery/electronics etc & relies on China/US as buyers
3/
*Japan has been artificially suppressing rates (yield curve control) & focused on keeping their 10yr capped at .5%; the recent "emergency bond buying program" from the #BOJ was $2.2 BLN (US)
*Japan spent $42.5 BLN (US) in a single day last October to strengthen the Yen
*Japan has been artificially suppressing rates (yield curve control) & focused on keeping their 10yr capped at .5%; the recent "emergency bond buying program" from the #BOJ was $2.2 BLN (US)
*Japan spent $42.5 BLN (US) in a single day last October to strengthen the Yen
4/
*Global Central Banks are now stuck b/c inflation is running so high; if they try and ease "print" their way out it will only add to inflation (see #BOE results last Fall)
*So a weakening YEN makes imports more expensive and rising yields makes the debt more expensive
*Global Central Banks are now stuck b/c inflation is running so high; if they try and ease "print" their way out it will only add to inflation (see #BOE results last Fall)
*So a weakening YEN makes imports more expensive and rising yields makes the debt more expensive
5/
Ueda officially takes over as head of the #BOJ April 28th; we will see/hear lots of things leading up to that (including today) but the math just doesn't work as I described in the above thread; Japan continues to sell US Treasuries (yields rising) to try & fix their own mess
Ueda officially takes over as head of the #BOJ April 28th; we will see/hear lots of things leading up to that (including today) but the math just doesn't work as I described in the above thread; Japan continues to sell US Treasuries (yields rising) to try & fix their own mess
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