Did you guys discuss this from Denniger yet?
<<Dec. 24 (Bloomberg) -- Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession, said Akio Mikuni, president of credit ratings agency Mikuni & Co.
The dollar may lose as much as 40 percent of its value to 50 yen or 60 yen from the current spot rate of 90.40 today in Tokyo unless Japan takes “drastic measures” to help bail out the U.S. economy, Mikuni said. Treasury yields, which are near record lows, may fall further without debt relief, making it difficult for the U.S. to borrow elsewhere, Mikuni said.
“It’s difficult for the U.S. to borrow its way out of this problem,” Mikuni, 69, said in an interview with Bloomberg Television broadcast today. “Japan can help by extending debt cancellations.”
Jubilee for America by Japan, forced by a pending currency dislocation?
Uh, just one question - what's China going to think of that?
The door is looking awfully small and the curtains are on fire.
(I never thought a suggestion like this, and recognition of what's going to happen to the dollar, would come that fast from overseas. Its amazing how these foreign folk can do the math while our idiot savants at The Fed are incapable of the same task when both have the same information in front of them.)
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