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“Haruhiko Kuroda doesn’t wear a wizard’s hat when he arrives at Bank of Japan headquarters each morning. Kuroda has done something truly supernatural in his five months as governor of the central bank. The more yen he conjures up to produce inflation, the more he mesmerizes markets. Yet a week after Japan’s IOUs reached the 1 quadrillion yen ($10.28 trillion) mark, yields have actually declined. What is Kuroda’s secret? The first is what economists call ‘financial repression’ — essentially transferring money via monetary policy from citizens to the government. The second is outright monetization of public debt.”

formerly http://www.bloomberg.com/news/2013-08-15/debt-of-1-000-000-000-000-000-yen-not-a-problem.html