Japan to Buy $10.3 Billion in China’s Debt

Japan said on Tuesday it had received approval from China’s government to purchase 65 billion yuan ($10.3 billion) in Chinese government debt in a move that can help Japan diversify its reserves away from the dollar and strengthen economic ties between the two Asian countries.

The timing of purchases hasn’t been set yet as Japan still needs to make some administrative preparations, but Japan is likely to start with a small amount and then increase purchases, Japan’s Finance Minister Jun Azumi said.

Japan will also consider the impact on financial markets when it decides the timing of its purchases, Azumi said.

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Why Nations May Need Us to Work Years Past Retirement Age

By 2030, Japan is projected to go from today’s 5.9 persons in the working-age labor pool supporting each retiree, to 1.9 workers per retiree (see Figure 1). In essence, this translates to a three-fold increase of pressure on the workforce just to support the population base at that time. This issue for Japan, according to the United Nations World Population Prospects, the 2010 Revision study, is higher than most but is followed by Europe, and the US. Even China faces an increasing pressure as we approach 2050.

Read the rest of the story: In a Few Years Nations May Need Us to Work Years Past Retirement Age.