2016-07-14

Bernanke's Advice for Japan: Perpetual Bonds

Bloomberg: Bernanke Floated Japan Perpetual Debt Idea to Abe Aide Honda
He noted that helicopter money -- in which the government issues non-marketable perpetual bonds with no maturity date and the Bank of Japan directly buys them -- could work as the strongest tool to overcome deflation, according to Honda. Bernanke noted it was an option, he said.
Japan could issue infinity perpetual bonds at negative interest.

If Japan does increase it's intervention enough to weaken the yen, how will yuan respond?
The next key level for USDJPY is 106.50, if it can't breach that level, the central bankers are in serious trouble.

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