Idiot of the day: Japan
Monetizing debt feels great when that debt is owed to someone else. It doesn't feel nearly as great when your debt, to the tune of two GDPs, is owed to your own citizens. By using Bernanke's methods in a country of savers rather than a country of debtors, Japan is launching a two-pronged attack on its own population, eroding their wealth through inflation at home and through exchange-rate losses of purchasing power abroad. Japanese bondholders will be happy to hear the news.