buy YEN.

The borrower is servant to the lender (Proverbs 22:7).

The difference: Japan runs a huge balance of payments surplus. We run a huge deficit. Our politicians beg the Bank of Japan to buy T-bills. Theirs do not beg us to buy Japanese bonds.  The US is running deficits. Japan’s central bank has assets to sell – very liquid  Treasury debt. We are the beggars. The Japanese are the prosperous people we beg from.  For now.

In the long run, our demographics are better than Japan’s and better than Europe’s.  This is it’s biggest weakness.  But this is very, very long term.

The debt/GDP ratio is too high in Japan, but it is rising everywhere.

As Gary North wrote: “Think of of the U.S. government as Oliver Twist in the work house. He holds out his empty bowl. ‘Please, sir, I want some more.'”

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