The next two days of US Treasury auctions will test whether the bond market can survive the near withdrawal of Japan from the market. In Japan today the bond market hit lows for the 2004 and are near their lows for the past year:
http://www.bloomberg...bonds_asia.html
An interesting bit about John Law:
When John Law was faced with crippling sovereign debts in eighteenth century France he issued a lot of successful paper money and made the country feel rich. He was clever, brave, charming, honest and - for a while - extraordinarily popular. Unfortunately he also caused virtually everyone who had any money in France to lose it, which tends to overshadow those other qualities. How it happened is worth understanding; and never more so than now.
http://www.safehaven...rticle-1424.htm
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