Bazz
Yes bail ins. Thanks for filling in the gaps although I was aware of most of the happening in Cyprus. I am fortunate to live where cash is king and many do not have a bank accounts.
Thanks for the pix elated money, I will just nip across the road to the china shop for a kilo of no 8 nails, I am sure he will be impressed.
Chris

Hey; You forgot your change !

Lofty One,

No, I'm not employed in banking or finance. And from watching ABC's The Business, it's clear that many of the people who are don't realise what's going on.

The reason I didn't comment on your statement about money/debt in circulation is because I didn't know the answer off hand, and I don't think the figure itself is that important. But I've checked and you seem to be right (though it does depend on how you define money).

I'm not really sure who owns how much, but don't forget that market capitalisation of companies doesn't always tell you how much money's involved.

Japan's debt is not unsustainably high. So long as a country's debt is in a floating currency that it issues, there is no such thing as too much debt. It doesn't even depend on the balance of trade.

It would be appropriate for the IMF to use special drawing rights to counteract the next GFC in countries that aren't in a position to solve the problem themselves. However the IMF itself is an anachronism, and with hindsight it would've been far better to have avoided the need for its creation in the first place. A much better solution would be to encourage all countries to float their currencies. Once they've done that, there's really no need for the IMF.

Another reason the ANZ regards your deposit as an asset is that they're likely to make a profit on it!

Infinity bonds are a bad idea IMO. Japan can always afford to pay back the capital to the bondholders. All it requires is the issuance of new bonds to replace the old ones.

Aidan
I will take your new name for me as a typo, a compliment, or your sense of humor.

I agree there is a false group think belief in the industry, that all is well and that the problems are behind us.

Money by my definition is the same as all the debt that exists.

“ Japans debt is not a problem”, I am sure you are aware there are many who would vehemently disagree with you. So why do you think governments tax their citizens, when all they need to do is borrow to pay its bills?

I agree IMF is an anachronism, and accountable to no one. However I don’t think floating currencies is the answer, as the world is full of the George Soros’s who would play the market to the detriment of all but themselves concerned.

I am sure they do make a profit on it, but as they don’t own it, it is a loan and therefore a liability; ask anyone who has a mortgage. The problem with this anomaly is it causes confusion in the general public as they don’t understand how a company can be bankrupt, when they have all these assets listed in their financial statements.

Our view is unlikely to affect the future of the idea; however I could see how it would appeal to some. Robbing Peter to pay Paul is a merry go round that has been tried many time by institutions and individuals alike. The problem arises when people’s confidence in the currency/solvency collapses and all the crediters head for the exit at the same time.
Chris

Lefty & Aidan, just what IS an IMF drawing right ?
Is it an IOU that the recipient country signs ?

Is it real ?
Is it just pixel money ?

Bazz
It is just like any other fiat currency.It works as money as long as people accept it and can pass it on to another person who accepts it.
So like every other currency used in history , back to the days of feathers and shells it works till it doesn't.

Chris