Mile High view: US v Japan, how are they the same/different

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sprintermike's picture
sprintermike
Status: Member (Offline)
Joined: May 11 2010
Posts: 3
Mile High view: US v Japan, how are they the same/different

A couple of mile-high questions that not many people could answer, BUT, I bet a lot of the folks here could answer them (or at least get close).

1. Is there a legal, procedural, structural, or any other outside limit to how many assets the federal reserve can purchase?

2. A large number of people say that the most recent bubble (first tech stocks, then real estate, now ...) is bonds. Indeed, the yields on bonds are very low, meaning everyone wants to be in them, hence they are a "bubble". What is to prevent the fed from keeping yields low for years on end (10 + yrs).

3. Many people have stated to me that the huge influx of new dollars will lead to inflation (and possibly higher interest rates, though I haven't wrapped my head around how that works yet). However, Japan has been running their printing presses red hot for more than a decade now and they have had close to zero inflation, and still maintain low interest rates. How do they manage that?

Can anyone recommend a good book (text book or otherwise) to help me get a better grip on this?

Much Thanks!

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