Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession.Replace the dollar and the USA by any poor country in Africa, and read again. This really gives me the shivers.
The dollar may lose as much as 40 percent of its value to 50 yen or 60 yen from the current spot rate of 90.40 today in Tokyo unless Japan takes “drastic measures” to help bail out the U.S. economy.
It’s difficult for the U.S. to borrow its way out of this problem. Japan can help by extending debt cancellations.
Japan should also invest in U.S. roads and bridges to support personal spending and secure demand for its goods as a global recession crimps trade, Mikuni said.
Japan should help the US the same way they help third world countries
I don't know how I have missed that - actually, I know, it's probably because I was trying to enjoy my holidays - but here's what Akio Mikuni, president of credit ratings agency Mikuni & Co. said on Bloomberg TV: