Rocket Science

PLEASE WAIT LOADING ,,,,,,,,, James Saft, a columnist for Bloomberg Reuters, purportedly one of the world's most influential finance and business wire services, has a interesting column out today. Interesting as in "How interesting it is that this piece got past the editors." (Link)

Saft offers a dire scenario that should give any possible foreign investor in Japan's government bond market pause:

At current very low interest rates - 10-year government bonds yield a paltry 1.0 percent - Japan has ample room for maneuver. Take that rate to 2.0 percent and Japan's annual interest bill doubles.

Call that bold; call it counterintuitive. Call it 1+1=2.

(Many thanks to reader JM for putting the scenario into perspective for me.)