Monday, July 18, 2016

Japan - Perpetual Bonds...Thoughts from the Frontline - The Age of No Returns - btbirkett@gmail.com - Gmail

Thoughts from the Frontline - The Age of No Returns - btbirkett@gmail.com - Gmail



Perhaps Japan could authorize the BOJ to issue very-low-interest perpetual bonds to take on a significant portion of the Japanese debt. That option has certainly been a topic of discussion. It’s not exactly clear how you get people to give up their current debt when they don’t want to, or maybe the BOJ just forces them to swap out their old bonds for the new perpetual bonds, which would be on the balance sheet of the Bank of Japan and not counted as government debt. That’s one way to get rid of your debt problem.

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