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August 16, 2011

Japanese customers wary of new bond issues as it reminds them of daimyo ways of old

“...to have the Bank of Japan underwrite more government bonds--will do no good. The effects would be similar to what happened back when unscrupulous daimyo feudal lords, attempting to increase revenue for their fiscally strained domains, put into circulation enormous amounts of coins that had extremely low gold content. The crooked measure lowered the value of money and caused prices to shoot up, with bitterly painful consequences for the people. ... Such a measure is like the tokuseirei--a debt cancellation order issued by medieval governments--that aimed at providing debt relief for the government at the expense of the people.”


Source: JAPAN BIZ TRACK: 'Bad money' must not be allowed to spread
THE ASAHI SHIMBUN
2010/03/22
http://www.asahi.com/english/TKY201003210194.html

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