Japan and United States' Debt

[Arroyo_Doble]

As a friend likes to say, I am an egg when it comes to economics but I have a question: With an obviously large rebuilding project in front of Japan, will they be less inclined to purchase American debt and also, will they need to use some of their 3/4 of a trillion dollars in American debt in the rebuilding? If so, will that have an impact on our governing institutions and the value of our currency?

[djones520]

I would imagine so.

[Novaheart]

As a friend likes to say, I am an egg when it comes to economics but I have a question: With an obviously large rebuilding project in front of Japan, will they be less inclined to purchase American debt and also, will they need to use some of their 3/4 of a trillion dollars in American debt in the rebuilding? If so, will that have an impact on our governing institutions and the value of our currency?

Disasters in places where real estate is valuable and insured is usually an economic booster. Hurricane Hugo was credited with doing wonders for Charleston.

[Rockntractor]

As a friend likes to say, I am an egg when it comes to economics but I have a question: With an obviously large rebuilding project in front of Japan, will they be less inclined to purchase American debt and also, will they need to use some of their 3/4 of a trillion dollars in American debt in the rebuilding? If so, will that have an impact on our governing institutions and the value of our currency?

You can be sure we will be at the forefront helping them rebuild, They won't want to do anything to drag us down or it will adversely effect them. We sink or swim together.

[megimoo]

You can be sure we will be at the forefront helping them rebuild, They won't want to do anything to drag us down or it will adversely effect them. We sink or swim together.

I agree.Japan holds almost as much of our debt as China does.Japan will rebuild slowly and prosper as they always have.They will cremate their dead at Shinto shrines, bury or scatter the ashes at sea .They have vast experience at recovering from earth quake disasters and take them almost in their stride .We will provide whatever aid they ask for but they wont ask for much !They are a country of resilient warriors !

[Starbuck]

Disasters in places where real estate is valuable and insured is usually an economic booster. Hurricane Hugo was credited with doing wonders for Charleston.

But not so much for Love Canal.
Or New Orleans.
Or the town of Prypyiat, which is the town built to house the workers at Chernobyl.
Pompei.....Of course I don't know whether real estate was actually insured at Pompeii, but it was valuable.
Mt Hood. Nice place for a summer cabin, though.
Atlantis.......if it actually existed.

And if Obama qualifies as a disaster we may learn that America had its finest day on Monday, Jan 19, 2009; the day before his inauguration.

[lacarnut]

Japan is selling their gold and silver. Remains to be seen what they will do with our debt instruments.

[Rockntractor]

Japan is selling their gold and silver. Remains to be seen what they will do with our debt instruments.

They have lots of birds and small animal pets, they will find a use for them.

[lacarnut]

Tax cheat Geithner testified before Congress today that Japan does not have to cash in those bonds we sold them. That lying weasel make me think just the opposite will happen. Be prepared for Helicopter Ben to work overtime and inflation to rear its ugly head. No problem though; our dummy in chief in playing golf.

[malloc]

Tax cheat Geithner testified before Congress today that Japan does not have to cash in those bonds we sold them. That lying weasel make me think just the opposite will happen. Be prepared for Helicopter Ben to work overtime and inflation to rear its ugly head. No problem though; our dummy in chief in playing golf.

I hope Bernanke isn't that big of a dolt, but I'm pretty sure my hope is misplaced. If Japan holds large amounts of U.S. Dollars and faces a monster of a rebuilding project in front of them, this could be a good economic opportunity for the both of us. Japan doesn't have the raw materials or manufacturing capabilities of the U.S., so the U.S. can provide the Japanese with raw and fabricated materials. Japan on the other hand will provide the labor, giving more people paychecks with which to purchase American and Japanese technology manufactured in China and Taiwan.

However, I said could. Even if helicopter Ben doesn't Hope and Change they money up for Japan, I'm sure the Chinese have designs on providing Japan with materials as well. The problem here is that the Chinese is more competitive than the U.S. due to lack of regulations and unions, and essentially slavery. America can win the product quality versus cheapness of slavery war any day of the week, it's the other factors that may price us out of the running.