“Mitsui Holdings” – Growing investor scrutiny over bond issuance means Japan must instill confidence.
Online PR News – 27-March-2010 – – “Mitsui Holdings” apparently believes that policymakers at the Bank of Japan will have to develop fiscal policy that instills investor confidence in the face of increasing scrutiny of public debt worldwide
Unlike the US or UK, most Japanese bonds are owned by Japanese individuals and corporations and this may be instrumental in the growing vocalizations from the Bank of Japan of its disapproval of Prime Minister Yukio Hatayama’s continual calls f or the bank to fight deflation.
“Mitsui Holdings” said that the Bank is purchasing some $20bn of its own debt every month in order to end the deflationary spiral the country has been locked into for years.
The Bank of Japan’s calls echo those from Bank of England Governor Mervyn King who has been urging the British government to announce plans to reduce public borrowing.
“Mitsui Holdings” suggests that the central bankers are perfectly aware that deflation is not a serious risk and that the money printing that continues apace throughout the developed economies is a ploy to inflate away their debt.