Insanity spreads: Now, Japan pretends it is running out of yens!
According to Japan’s Finance Minister Azumi, Japan could be the next Greece!
As Reuters reports, “Assuming that the deficit financing bill does not pass, the government would have only 46.1 trillion yen on hand, Azumi said. This means the government is sure to run out of money by the end of October, he said.”
Now, let’s see: Can Japan be the next Greece?
Only if the Japanese government deliberately took action to refuse crediting bond-holders when their bonds mature.
This would be the equivalent of telling the following to all bond-holders:
- Hey guys! We had credited you with yens when we spent our currency.
- Then, we sold you bonds (at some, low, interest) and debited your yens accordingly.
- Too bad! Now we tax you for the whole amount of the bonds you hold.
- See? Bonds may not be as good as currency!
- And the reason we do this is because our budget is collapsing.
- And if we don’t do this, you cannot spend and revive the economy.
Or is it just another political sideshow?