This Time Japan Dropped a Bomb on Us - Ep 863
The Peter Schiff Show Podcast
00:00
The Japanese Dropped on the Markets on Monday Night
The bank of Japan has committed to keeping the yield on a 10 year Japanese government bond at 25 basis points. Now given that inflation is well above 25 basis points, nobody wants to loan money to the Japanese government at just 25 per cent. The only way for the bank of Japan to keep rates that low is to create even more inflation to buy those bonds. So it's like a dog trying to catch his tail. It's never going to do it. And I believe before too long, the yield on the 10 year JGB is going to be stuck right at 50 years old.
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