by David Stockman
David Stockman’s Contra Corner
[…] Sometimes an apt juxtaposition is worth a thousand words, and here’s one that surely fits the bill.
Last year Japan lost another 272,000 of its population as it marched 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 first six months of 2016 has been an astonishing 48%.
We aren’t talking Tesla, the biotech index or Facebook. To the contrary, like the rest of the Japanese yield curve, this bond has no yield and no prospect of repayment.