by John Rubino
Dollar Collapse
Yesterday Japan’s government borrowed money on terms that require the lenders to pay rather than receive interest for ten years. And not only was that bond issue snapped up, it was vastly oversubscribed. This raises a lot of questions, the chief being “why would anyone voluntarily commit to something that’s guaranteed to lose money for a decade?”
The short, obvious answer is that the world’s central banks are creating so much excess cash that there seems to be nowhere else for it to go. The longer, but way more interesting and scary explanation is that capitalism as it used to function is over, and the result will be catastrophic.
Here’s an overview of those Japanese bonds: