Here is Bill Gross on Japanese debt .... the full article is at Bloomberg

  • 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.

He goes on:

  • "Ultimately, they could say ... You don't have to pay us back. Or we'll extend your debt to 50 years with a zero percent coupon and at that point we'll essentially eliminate the entire obligation.' "
  • Such a move would have dramatic and damaging consequences for Japan's currency, savings rate and private sector

And, he isn't finished:

  • "Japan's a pretty good picture for the rest of the world, maybe five or 10 years ahead. I have a sense that that's the route central banks will pursue"

Check out the link above from more from the G-man.