Required reading: How Japan Blew Its Savings Surplus: What A Keynesian Dystopia Looks Like. Especially frightening: "even at today’s absurdly low and BOJ rigged bond rate of 0.6%, nearly 25% of government revenue is absorbed by interest payments".
The comments on this article are also interesting, there being one or two enlightening observations along with the usual ZH circle-jerk. Notably: as the balance of payments declines, asset sales abroad and consequent repatriation will put upwards pressure on the yen; if there is private selling too, though that will presumably mostly be JGBs so no exchange rate effect, there will be inflation; inflation plus a high exchange rate equals stagflation! And more, faster selling.
Look also at an article from yesterday: Japanese Bond Futures Volume Collapses To Zero Even As Service Sector Implodes. The Bank of Japan is now the only buyer for Japanese Government Bonds, and as Japan goes today, so America will go tomorrow.
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