>> Man Japan needs to up their interest rate to support their YEN,
instead of lending their insiders at cheap interest, which
they convert to dollars and buy our bonds to make the spread.<<
James - do you realize they are making not only the interest spread on the bonds , but the CURRENCY spread as well !!
Think of it - you borrow 100 million yen at 100 to the dollar , 2% interest. You buy $1 million in T-bonds yielding say 7% , which is about where they were when the Yen was at 100.
You make 5% on the $1,000,000 bond spread , and then it only costs $690,000 to pay back the yen. Oh , I forgot , the bonds went up, add in a $150,000 capital gain, too!
It sure must beat working for a living !! |
