Japan to buy Chinese government debt (they still issue that?) in an attempt to weaken the Yen. The problem is Japanese domestic demand will not lift China out of the doldrums and the (real) bump in the Yuan will not suffice to combat inflationary pressures in the Middle Kingdom...in addition:
/START RANT...and now China has even more foreign exchange to distribute to party members "just in case" the people revolt and the leaders relocate to safer jurisdictions. /END RANT.
Sorry about that dear readers, but the twin pressures of a resurgent communist government and an unruly populace have many party members (who also happen to be major capitalists) quite nervous about retaining their new-found riches.
March 13 (Reuters) - Japan said on Tuesday it had received approval from China's government to purchase 65 billion yuan ($10.3 billion) in Chinese government debt in a move that can help Japan diversify its reserves away from the dollar and strengthen economic ties between the two Asian countries.
The timing of purchases hasn't been set yet as Japan still needs to make some administrative preparations, but Japan is likely to start with a small amount and then increase purchases, Japan's Finance Minister Jun Azumi said.
Japan will also consider the impact on financial markets when it decides the timing of its purchases, Azumi said.