The screaming alarm bells continue to sound while the majority of the public continues to participate in this brief corrective phase of positive mood. Here is an example of how the U.S. continues to speed down the highway towards full-blown Banana Republic status:Japan 'would avoid dollar bonds'
from the BBC
Japan's opposition party says it would refuse to buy American government bonds denominated in US dollars, if elected.
The chief finance spokesman of the Democratic Party of Japan, Masaharu Nakagawa, told the BBC he was worried about the future value of the dollar.
Japan has been a major buyer of US government bonds, helping the US finance its Federal budget deficits.
But, he added, it would continue to buy bonds only if they were denominated in yen - the so-called samurai bonds.
"If it's [in] yen, it's going to be all right," Mr Nakagawa said in an interview with the BBC World Service. "We propose that we would buy [the US bonds], but it's yen, not dollar..."
Now, let's not read too much into the article - this is just an opposition party making waves. But in times of economic turmoil, governments can fall and the opposition can become the majority. And if this theme is well-received in Japan, we very well could see the U.S. being forced to issue foreign-currency denominated bonds.
Then there is this:Dollar Could Slump on AAA Rating Fears: Analyst
As talk of the United States' ability to keep its AAA rating resurfaced Wednesday, one analyst told CNBC that the impact could be prove a major drag on the strength of the dollar.
Concerns over the rating reemerged as David Walker, chief executive of the Peter G. Peterson Foundation and former comptroller general of the US, wrote in an opinion piece in the FT that the US government’s top tier rating could be at risk...
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