Comment: Japan vs China: Deep Oceans of Debt. Both Have Oceans to Fish!

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Japan vs China: Deep Oceans of Debt. Both Have Oceans to Fish!

Japan is now set to surpass China as the largest foreign holder of U.S. debt by the first of 2013. Japan has increased its holdings of U.S. debt by 6% this year. Part of the reason for the purchases: the desire to keep the yen down amid safe-haven buying. From Bloomberg:

    “Japanese demand for Treasuries is rising along with its holdings of foreign exchange, as international investors seeking safety amid the global economic slowdown snap up yen…The ruling Democratic Party of Japan indicated last month that it may support the central bank’s purchases of foreign bonds to weaken the yen and counter deflation.”

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul