Bill Gross was on the wires last week (Japan's huge debt pile - Bill Gross says there's only 1 way out) saying:

  • I think at some point, Japan will basically buy up all its debt and the central bank will forgive the treasury and try to move forward with that. I see no other way out for Japan.

The drumbeat of debt monetization is getting louder ... Adam was banging on it over the weekend: A paradigm shift is under way on deficits

And now, this from Bloomberg:

  • Helping improve household sentiment could be one reason for making it explicit that at least some of the government bonds in the BOJ's holdings will be written off. If Japanese consumers understand they're not on the hook for all the gross debt outstanding, their mood could potentially perk up.

Standing in the way of writing off the debt, though, is BOJ Governor Haruhiko Kuroda

  • Kuroda would probably never endorse such a plan, according to Masaaki Kanno, chief Japan economist at JPMorgan Chase & Co.

But, adds Bloomberg:

  • Kuroda has a little less than two years left in his current term

2 years ... the clock is ticking

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The Bloomberg piece is here