John Rubino's Substack

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Japan Takes Another Step Towards the Cliff

'Flexibility' now means capitulation

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John Rubino
Jul 31, 2023
∙ Paid

For a while there, the Japanese government had a sweet deal going. By pushing interest rates into negative territory — which forced bond buyers to pay for the privilege of owning said bonds — it was able to earn money on its national debt.

So the more the government borrowed, the more it earned. And borrow it did, with government debt as a percentage of…

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