Hello, fellow rebel capitals, hope you're well.

Wanted to go over the Bank of Japan's balance sheet.

Everyone is talking about yield curve control from the Bank of Japan

and that they're setting a maximum interest rate, so let's say

50 basis points and they will not allow their 10-year bond to exceed those 50 basis points and in an effort to do so they just buy as many

as they need to and this creates more currency units.

Now depends on who they're buying from, right, if they're buying from a non-bank

entity or a banking entity different there, but we don't really have to go into the weeds that deep to understand the concept.

And this is the fact that if they own 50%, they Bank of Japan owns 50% of the JGB's or the Japanese government debt,

why not do a jet jubilee? And if you can do a debt jubilee, then we get a free lunch. That's free money. So why would governments not just deficit spend like a drunken sailor and as long as the central bank is buying all of the debt and as long as you don't get inflation like Japan then we found the secret money tree.

We found the goose that lays the golden egg.

We found a way to increase wealth without increasing productivity.

We can just sit back, relax, we never have to work a day in our lives.

All we have to do is just allow the government to spend money, take care of us, we'll all be rich, fat and happy,

and then if the government wants to sell some bonds, they can't sell some bonds to the open market, drives with the interest rate,

no problem. BOJ comes in, buys the bonds, do a quick old debt jubilee,

boom, we're off to the races again. And we hear a lot about the BOJ injecting

liquidity into the system, doing the yield curve control, and we also hear on how the United

States in the future may have to do the exact same thing.

And then all the MMTers come out with that debt jubilee type of example that we just went over.

So let's go over the Bank of Japan's balance sheet really shocking when you look at this

chart and see not just the amount of government liabilities was nominal terms

...