Japan's debt crisis plan was just leaked

Sammy Stockz @sammystockzz X.com Japan's debt crisis plan was just leaked Japan to launch new initiative to increase government bond purchases from citizens The country's debt is now 250% of GDP, which is over double the level of debt in the US. Here's how they plan to fix it Japan has been able to manage their heavy debt burden because rates were zero in the country for decades. But in the past couple years, the yield on 10Y treasuries has reached a 30-year high of 2.9%. It now costs $230B a year just for the country to cover its debt burdens. Japan 10-Year Yield Rises to Highest Level Since 1996 To bring yields down, the Japan needs more citizens to buy bonds. Right now, 50% of the debt is held by the Bank of Japan. 40% is held by banks and institutions. Only 0.8% of all the debt is held by actual Japanese citizens. Because rates have been near zero for decades, citizens haven't bought bonds because there's not much of a return. But now, with rates rising and the BOJ tapering bond purchases, they need citizens to buy. So the government plans to give tax breaks to citizens that buy the debt. A new proposal would make interest gains on government bonds tax-free. They also plan to exclude government bonds from inheritance taxes when family members pass away. We'll see if this policy works, it seems Japan is getting desperate... BONDS Japan weighs tax breaks for buyers of government bonds Full text: Natural bank lending 10000