Re: RE: Japan

[Doug Henwood <dhenwood@xxxxxxxxx>]

Forstater, Mathew wrote:

> See Downgrading Japan, C-FEPS Policy Note 02/01
>
> "It is no secret that the Japanese economy remains moribund, facing its
> third recession in a decade and with rising unemployment, price
> deflation, and persistently stagnant growth. And in spite of near-zero
> interest rates, large fiscal deficits, and a series of economic reforms,
> the prospects for recovery remain dim. However, anyone who understands
> the nature of sovereign debt knows that none of these factors should
> play any role in assessment of default risk on local currency
> denominated sovereign debt of any nation with a floating exchange rate."
>
> http://www.cfeps.org/pubs/pn/pn0201/pn0201.html
>
>
> Ian wrote:
>
> [The Guardian]
> Japan furious at credit downgrade

And, as the Japanese government pointed out, it's absurd that their
bond rating is now lower than Botswana's. Must be time to go long
Japan.

Doug