by John Rubino
Dollar Collapse
For the bond markets, covid-19 is apparently a great equalizer. Before the pandemic, Japan’s long-term interest rates were much lower than those of most other countries’, in part because Japan has been deeply in debt – and therefore under pressure to finance that debt with low interest rates – longer than the US and Europe.
But now that everyone has to finance surreally large deficits, government bond yields are falling almost everywhere – except Japan – which raises some interesting questions.