On CNBC: Will Japan drive our interest rates higher?

in 5 Minutes of Fame/Japan by

3 Comments

  1. Vitaliy,
    I just looked and 10-yr and 30-year government bonds are about 2.0% higher in the U.S. than in Japan. Hence, your interview logic seems dubious in that the likelihood of Japan’s rates rising to near or above U.S. rates in the forseeable future seems very unlikely. What am I missing here?
    Thanks,
    Jeff

  2. I’m Japanese investor,and reader of youe book(off course in Japanese).
    What your saing is right, but It takes long long time later.

    My opinion is that we use US bond interests for PPIF(Privae public Investment Fund which is gone so far).

    In Japan,it is said that we have used our trade surplus for US bond too much. In dollar low-Yen high situation like now, some people say we must invest another currency. I think this opinion is much tougher than your opinion doesn’t it ?

    So far,Prime Minister Hatoyama keeps old style, but Democratic Party of Japan might say more frankly about too much US Dollar policy which goes up US bond rate directry(but,that worse Japanese economy too).

    Anyway, your concern is very long term thing.

  3. Jeff: I did not say Japanese rates were higher than US Treasuries today. I said that may/will happen in the future.

    Goncha: Happy to hear any new thoughts you may have. I agree it will likely take awhile for this scenario to play out. Curious on your thoughts about the book’s translation.

    Best,

    Vitaliy

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