[NASA Test Pilot]

Japan Sells 10-Year Bonds at Negative Yield for the First Time

(Bloomberg) – The Japanese government got paid to borrow money for a decade for the first time, selling 2.2 trillion yen ($19.5 billion) of the debt at an average yield of minus 0.024 percent on Tuesday.
The sale drew bids for 3.2 times the amount of the securities offered, the first increase in demand since an auction in December, according to the Finance Ministry. Japanese government bonds of as long as five years in maturity sold at an average yield below zero for the first time last month, after the Bank of Japan pushed yields lower across the curve with the announcement of negative interest rates Jan. 29.
“Demand was stronger than expected,” said Shuichi Ohsaki, chief rates strategist at Bank of America Merrill Lynch. “The outcome suggests there is ample demand before redemption of existing bonds in March.”
The benchmark 10-year bond yield dropped as low as minus 0.075 percent after the auction, matching a record. Yields on 20-year debt sank to an unprecedented 0.46 percent, while those on 30-year securities declined to an all-time low of 0.765 percent.
The JGB yield curve was the flattest on record at the end of last week, under pressure from the BOJ’s bond purchases, with the premium offered by 10-year securities over two-year notes narrowing to just 11.5 basis points. The central bank buys as much as 12 trillion yen of the nation’s government debt a month.

Here are a few words from Bill Gross. ¨The secret in a negative interest rate world that poses extraordinary duration risk for AAA sovereign bonds is to (1) keep bond maturities short and (2) borrow at those attractive yields in a mildly levered form that provides a yield (and expected return) of 5-6%.¨

Borrow, Borrow, Borrow. Not Produce, Produce, Produce. Capital formation will continue to decline as will any type of middle class.

[Lizard King]

(02-22-2016 01:21 PM)PhDre Wrote:  

(02-22-2016 12:40 PM)It_is_my_time Wrote:  

Without enough kids being born, you have no choice but for immigration, and immigration has now been in effect long enough to see the drastic and dangerous results on their system.

Then why are none of these immigrants working?

Maybe the Latino and Asian immigrants in the US work and pay taxes, but that's not the case for the North Africans and Arabs coming to Europe. They simply refuse to work (and are not required to!) while receiving an enormous amount of monetary support from the government.

Politicians have been pushing the narrative about "how we need migration to take care of our ageing population" for decades, yet every objective report shows that these immigrants are a massive burden.

I think this forced immigration serves other purposes:
- decrease wages.
-increase public debt (and subsequently increase income tax on employees and SMEs to make banks even richer and to prevent people from succeeding in life through hard work).
- increase criminality to give the government free reign to destroy privacy and free speech and control every aspect of our lives.
- destroy national identity and natural solidarity such that people don't organise to oppose the decline.

Many of them do work.

But they all become consumers to some extent. They get a mobile phone, they buy a tracksuit with their first bit of Euro or UK money (welfare, whether they work or not, EU law dictates that all humans on EU soil are entitled to the same welfare benefits, which means if the UK tries to introduce restrictions on 'in-work benefits' such as being resident for 3+ years, the EU will say no, you can't do that, our laws supercede yours.)

I am by no means an economist, but I am able to understand that the type of debt driven economy that is prevalent today, requires an increasing population to survive(hence the EU instigated migrant influx). I don't think it is a requirement in this type of economic system for the migrant to be a worker, they just need to be a taxable consumer. Yes, we here all realise that there is going to be a backlash to this but that will be dealt with by the militarised police. The books will balance for the bankers which is the main concern for those directing this type of economy.