What does it mean towards the US and the World
In: Economics
Japan gave away money interest free. People would take the loans amd just buy Treasury bonds and stuff that would pay them interest, effectively printing money. They suddenly imposed a 0.25% interest rate and now no one would take the loan. Without all that demand, the US bonds would be worth less, and those have been in trouble for a while. If no one buys bonds, the government would have to buy them off, but issuing bonds is how they get their money, so they would be fucked. Is going to be an interesting week.
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