by David Stockman
David Stockman’s Contra Corner
Sometimes an apt juxtaposition is worth a thousand words, and one from this morning’s news is surely that.
Last year Japan lost another 272,000 of its population as it marches resolutely toward its destiny as the world’s first bankrupt old age colony. At the same time, the return on Japan’s 40-year bond during the last six months has been an astonishing 48%.
We aren’t talking Tesla, the biotech index or the FANGs. To the contrary, like the rest of the JGB yield curve, this bond has no yield and no prospect of repayment.