This one matters a lot. Abenomics was predicated on a lunatic notion—namely, that the economic ills from Japan’s debt overhang could be cured by a central-bank bond-buying spree that was designed to be nearly 3 times larger relative to its GDP than that of the Fed. Yet anyone with a modicum of common sense and market experience long ago recognized that such a massive, artificial bid from the central bank would drastically deform the world’s second largest government bond market – turning portfolio managers into compliant fellow travelers at first, and eventually driving them out of the market as the BOJ swallowed up ... (full story)