Japan Is Proof
Some new figures out from Japan show that nation's debt is approaching 1 quadrillion yen. I remember Alan Simpson of Simpson/Bowles fame making all these goofy analogies about what a trillion was -- a stack of dollars stretching all the way to Mars and back or something like that. Imagine the field day Simpson would have with a quadrillion.
I bring this up because there's always such an outcry whenever people start talking about government money-printing. The inflationistas go crazy, their predictions of hyperinflation and currency debasement and depression flying everywhere. Yet, even with the mindboggling quantity of debt in Japan, the highest as a percent of gross domestic product anywhere in the world, there are still no bond vigilantes in sight. Moreover, the interest rate on a Japanese 10-year government bond is a paltry 0.75%. Who would have thought?...469 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.