Banks, Bucks and Bolsheviks

Dennis R Redmond dredmond at OREGON.UOREGON.EDU
Mon Mar 15 16:33:12 PST 1999


On Mon, 15 Mar 1999, D. L. wrote:


> interest rates would predict. Japan pays a premium when borrowing and it
> is in part because of the poor quality of Japanese loan portfolios. U.S.
> Treasuries are the standard by which all other credit is judged.

When borrowing *abroad*. But Japan doesn't need to borrow abroad; it's a global creditor nation, remember? You seem to forget that the US has been borrowing around $100 billion from Japan every year to finance its own expansion.

The spread between the T-bill and the E-bill (euro-bill) is the *true* standard by which global credit is judged.

-- Dennis



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