"Nominally, gold has surpassed its record highs of the early 1980's (and silver is well on it's way). In real terms, adjusted for inflation, gold would have to hit roughly $2300 per ounce to have the same "value" as what it had in the 1980's."
Get that? "....gold would have to hit roughly $2300 per ounce"!?
The irony in this madness is that all the Japanese people want is their money back. They are not looking for appreciation. They do not have absurd pension plan assumptions like the 8% expected returns we see in the US. They do not want stocks, or real estate. They just want cash, and they want it to be worth something.
Yet, the Japanese government was hell-bent for two decades attempting to generate inflation which would have weakened the value of those bonds.
Recently, those bond holdings have been rising with a strengthening yen. However, lingering debt from preposterous deflation fighting efforts of building bridges to nowhere must be paid back. Horns of a Dilemma
Japan choices are to default on its debt, print money to fund interest on the debt, raise taxes effectively robbing savers of their money, or undertake huge spending cuts.
The dilemma stems from years of Keynesian and Monetarist stupidity.