But if it were mainly from unwinding of positions, wouldn't that imply a temporary imbalance in which case the BoJ intervention would not have been needed?
everyone seems to focus on jpn's hugh debt but why do they not see the hugh assets they also have? jpn is the 2nd largest holder of t bonds thats provided they unload before china does
@risktaker... no, the unwind was precisely why intervention was needed. the carry-trade involves selling yen (borrowing it) for cheap, and using the money to invest in other assets (a lot have gone into treasuries). may 6th (flash crash) marked the beginning of the unwind of that trade (buying back yen) and has been going steady ever since.
Chinese government bought record sums of Japanese and Korean bonds. A scholar with Chinese government affiliation threatened to dump U.S. bonds in a yesterday's article.
Japan's debt could suddenly spiral out of control It is widely known that Japan has a debt-to-GDP ratio of over 300 percent, by far the highest of all industrialized countries. The 300 percent mark is also sometimes called the point of no return, as the debt mountain is very likely to only grow faster from that point on, with interest payments alone amounting to a double-digit share of total national income. Complete article-: http://www.ibtimes.com/articles/614...t-default-if-interest-rates-suddenly-rise.htm
Japan should beg China to colonize them. why not? The Chinese have culturally colonized japan for the last 2000 years
Japan was bombed with atom bomb and Japan became the number 2 economy. USA dropped the atom bomb and USA became number 1 economy. Surprising isn't it.