Japan Should Scrap U.S. Debt; Dollar May Plummet

Soon the world will lose confidence in the U.S. Dollar, looks like it's already starting. 2009 may be the year of the dollar crisis, lets's hope not.-Lou

Japan Should Scrap U.S. Debt; Dollar May Plummet, Mikuni Says

Dec. 24 (Bloomberg) -- Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession, said Akio Mikuni, president of credit ratings agency Mikuni & Co.

The dollar may lose as much as 40 percent of its value to 50 yen or 60 yen from the current spot rate of 90.40 today in Tokyo unless Japan takes “drastic measures” to help bail out the U.S. economy, Mikuni said. Treasury yields, which are near record lows, may fall further without debt relief, making it difficult for the U.S. to borrow elsewhere, Mikuni said.

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