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Japan bought 10% of eurozone fund's latest bonds

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© 2011 AFP

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This probably also had some effect on the yen to euro exchange rate.

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I know the first impulse here will be to ridicule this move, but financially it's not such a bad investment if you think Europe will eventually come through this and because the yields are comparatively high. The yields are much lower for US debt and as some who live in Japan already know, your Japanese accounts pay minuscule interest.

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I really really dont understand how this money thing works!! If money is all just numbers on computer screens, cant they just input numbers in. I really dont ger it. I do get GOLD. But money that could be printed or minted and a bunch of 0s and 1s....

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And these will be paid off with more bonds. Never ending cycle.

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it is not true that there is a fixed share

Does anyone know % breakdown by country?

Japan - 10% China - USA UK ,..

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And these will be paid off with more bonds. Never ending cycle.

Yes, they do. War has the potential to end the cycle.

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cant they just input numbers in.

The can and that's how it works. Booking and realloting the privileges without collateral. Accountancy is the collateral.

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European leaders will likely welcome the continued support from Tokyo as other governments and investors appear less willing to buy bonds amid the intensifying debt turmoil. China, which had previously bought EFSF bonds, has so far remained noncommittal about future purchases.

I am posting the above from WSJ.

I hope Japan understood a 10-year bond issuance on Monday with high yield is a junk bond.

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economy is one of the most mysterious things ever: japan has a horrible economic crisis, just went through a devastating earthquake-tsunami-nucleohell, has still lots of people living in tents, but japan amazingly can afford a 300 million euros investment. hope europe ain't doing a ponzu, scratch out, ponzi-scheme on japan

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Yes, this is right, There is a difference between money supply categories ie notes and coins, in our daily life and international finance ie numbers on a computer screen. The way that people are treated is unfortunately different too.The elites of Japan and their buddies in manufacturing et al take priority over homeless Mr Tanaka living in a tent under a bridge in Osaka.

Yes it is an unfair world..........

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So we have the most heavily bankrupt nation in the developed world using money it doesn't have to purhcase bonds placed on the market by other bankrupt countries who have next to no chance of paying the money back.

And you wonder why leaders of developed nations keep talking up confidence in their economies....?

Because without investor confidence, a tipping point of people will realize that global financial markets are running purely on IOUs..

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This act does not use yen, but euro, which cannot be exchanged to yen due to such a high value of yen. So it has little to do with Japan's economy itself and also with reconstruction from the earthquake because these acts use yen, not euro. Maybe Japan need not publish any bode to make up for it.

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"Sorrow-charity" or solidarity if you like to put it. Like in the case of Japan's domestic sovereign debts, the generous move to be the savior of Europe ends up as further imposed debts on Japanese nationals' wallets given the fact Japan has no nominal foreign debts on her book.

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SushiSake3 wrote:

So we have the most heavily bankrupt nation in the developed world using money it doesn't have

You really need to do your homework. Japan has been the worlds biggest creditor nation for 20 years straight, with net foreign assets totalling 250 trillion yen, the world's largest. Japan is the richest nation in the world, objectively speaking. Japanese government debt is huge, but it is 95% owed to Japanese financial institutions, which have so much money they're dying to lend out and have no choice but to buy government bonds, and that is why the interest on Japanese government bonds are the world's lowest, in spite of the high government debt to GDP ratio. The important thing about "debt" is not just the figure itself, but who is borrowing from whom.

Of course it will be a totally different story if Japan's debt were owed to other countries. In that case, Japan will be in real financial trouble, like Greece is in...

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Fools! The government should not use our tax money trying to keep the dying Euro Zombie alive.

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BAKA! stupid politicians help Europe but not our own. Reference homeless in Tokyo

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@YuriOtani

That's because they don't care about the homeless. They only care about their own wellbeing. If the Euro goes under that will affect the politicians and the corporate swine. If a thousand homeless die the politicians are better off.

George Carlin was very prophetic about it http://www.youtube.com/watch?v=HeIYuwLSwcM @ about 1:10 "War on Homelessness"

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