And foreigners will be delighted to buy JGBs…. just hike interest rates from a meaningless 1% to at least 2% to match the US 10 year, and make JGB’s attractive.
Oh wait, there is a problem with that. As Andy Xie pointed out:
“If the bond yield rises to 2 percent, the interest expense would surpass the total expected tax revenue of 42.3 trillion yen.”