Japan Set To Purchase $10.3B of China’s Debt
- Posted on March 13, 2012 at 11:46am by
Becket Adams
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Tokyo has been given the green light from Beijing to purchase $10.3 billion in Chinese government bonds, Japan’s finance minister said Tuesday. But perhaps more interesting than the amount Tokyo intends to purchase is the fact that this is the first time China has allowed an advanced economy like Japan to buy its sovereign debt.
“The move is part of a broad package of financial agreements between China and Japan announced in December, aimed at strengthening financial ties between the world’s second and third largest economies,” writes The Wall Street Journal’s Takashi Nakamichi.
A deeper-rooted collaboration between the two trading partners could elevate the Chinese yuan‘s status as an international currency while simultaneously solving Japanese businesses’ foreign-exchange issues with China.
On March 8, “we were told by Chinese authorities that we had received permission to buy (Chinese government bonds) worth 65 billion yuan, or about $10.3 billion,” Jun Azumi said at a press conference.
“I think the amount is appropriate given that the goal of this step is to reinforce our bilateral economic relationship, such as by promoting the exchange of information between Japanese and Chinese authorities.”
However, it could be months before the Japanese government begins purchasing Chinese government debt, Azumi said. He hinted that Tokyo will try its best not to affect the markets with this move.
“We need to consider market developments in determining the timing of purchases,” he said.
“For the time being, I believe it is appropriate for us to start investing small amounts within that purchasing limit” using Japan’s foreign currency reserves, he said.
It should be noted that China has a strict policy that requires all investors to seek permission from its central bank before any purchases of sovereign debt are made.
“China has been actively investing in Japanese government debt in an apparent bid to shift some of its foreign exchange reserves—the biggest in the world—into yen from the dollar due to risk aversion amid the ongoing European debt crisis,” Nakamichi writes.
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Apple Bite
Posted on March 13, 2012 at 7:34pmBottom line is, at least Japan recognizes the problem and are trying to resolve it. Our government has been so stuck on running up debt, that they won‘t even hold themselves accountable for their own grievous actions towards taxpayers’ livelihood.
Report Post »TheObamanation
Posted on March 13, 2012 at 1:09pmGet ready for Inflation …
Report Post »Texas.7
Posted on March 13, 2012 at 12:49pmeven more so if China turns around and buys some of theirs
Report Post »MDDAWG
Posted on March 13, 2012 at 1:06pmHey, Becket. When you posted this article, you should have let us know what Japan’s national debt is. I’ll let you all know. It is 8 trillion. That’s right. They have the second largest national debt. It’s like me putting my Visa bill onto my AMEX card. It’s not going to work.
The world is trying a failing experiment in borrowing to stimulate production. It’s not going to work. Be prepared!
Report Post »American National Socialist
Posted on March 13, 2012 at 12:34pmI wonder what would happen if Marxists told the Japanese people that they had to become a massively multiracial nation like the United States.
Report Post »hawkeyez
Posted on March 13, 2012 at 1:26pmThat will never happen in Japan or China. They simply will not tolerate non productive people.
Report Post »The thought that either would import a burdon to there government and economy is foolish.
You will never see them dumb down there education system to accommodate certain people and you will not see them try to absorb these losers into there business’s or Government like the USA has done. They are smarter than us.
Detroit paperboy
Posted on March 13, 2012 at 3:08pm@Hawkeyez
Report Post »You got that right…. Spot on ! We are so stupid…. But all the stupid people feel much better about themselves !!!! In AmeriKa….
Snowleopard {gallery of cat folks}
Posted on March 13, 2012 at 12:22pmThis would be interesting indeed – China basically owns the US debt, and Japan may come to own the Chinese debt…who then owns Japans?
Report Post »mongastanman
Posted on March 13, 2012 at 12:53pmChina doesn’t basically own our debt. We owe Japan (about 1.2T) almost as much as we owe China (about 1/5T). Add the two of those together and it doesn’t even equal what we owe our own central banks/fed. reserve (over 5T!).
Report Post »mongastanman
Posted on March 13, 2012 at 12:59pmI ment- China (1.5T)
Report Post »piper60
Posted on March 13, 2012 at 12:05pmI find it interesting that the Japanese should decide to buy the debt of the country that holds the majority of ours. How does this effect us?
Report Post »TXPilot
Posted on March 13, 2012 at 12:15pmAnyone checked out the financial status of Japan lately? For them to decide to buy someone else’s debt, is like someone who is bleeding to death, deciding it would be a good idea to donate blood. Oh, and for a little more irony, this situation is also similar to how we seem to be buying Euros, for some odd reason.
Report Post »SpankDaMonkey
Posted on March 13, 2012 at 12:02pm.
Which one is gonna be the Ch!nk in this deal?……….
Why is everyone so sensitive?……
I’ve been told I have a Bad Monkey here lately. So if I have said anything that has hurt Ya‘lls feelings I’m
Truely Sorry…..
But, I’ll probably do it again, so I’m Truely Sorry in advance. And, Please Stop Tell’in on me, you are not in the second grade anymore…….
Report Post »lukerw
Posted on March 13, 2012 at 12:11pmLOL :) ‘I come not to praise Caesar…’
Report Post »spirited
Posted on March 13, 2012 at 12:59pm@@
?**?
?@@?
;^> See non, Hear non, Speak non….just keep spankin!
Report Post »spirited
Posted on March 13, 2012 at 1:16pmOops!
Fogot the O.
?@@?
Report Post »cloudsofwar
Posted on March 13, 2012 at 1:29pmdid you mean *****?
Report Post »cloudsofwar
Posted on March 13, 2012 at 1:42pmwow the blaze still will not allow us to type that word ckhin. rearrange the letters please, i can’t type them.
Report Post »Obama Nation
Posted on March 13, 2012 at 11:58amGlenn Beck, Bill O’Reilly, Sarah Palin and even Andrew Brietbart and his legacy all say they want to vet Obama this time around. Yet none of them will stand behind Sheriff Joe Arpaio who has announced that there is probable cause to believe Obama’s birth certificate is a forgery.
They are all full of you know what!
Report Post »piper60
Posted on March 13, 2012 at 12:04pmgo away
Report Post »lukerw
Posted on March 13, 2012 at 12:25pmIf… Obama was actually born… before August 21, 1959… when Hawaii became a State… he is not Eligible to be President.
Report Post »cloudsofwar
Posted on March 13, 2012 at 1:38pmobamas mother registered Barrys birth in hawaii because back in 1961 anyone could become a US citizen by simply registering their birth there. didn’t matter to hawaii where you were born, they got money from the federal gov. or so i read. this makes since when you look at BO’s bc.
Report Post »lukerw
Posted on March 13, 2012 at 11:57amHistory purports… the Japanese orginally came from Northern China… conquered the people of the Islands, and became WarLords to control them. Yet, when the Mongol Emporer of China attempted to conquer them… a Divine Wind sunk their fleet… creating Division and Hate!
So, what kind of “Kaze” (Wind)… is this?
Report Post »spirited
Posted on March 13, 2012 at 1:20pmThe same as the Red Sea parter ?
8^> Are there prizes
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