TOKYO (AFX-ASIA) - Taku Yamasaki, secretary-general of the ruling Liberal Democratic Party, said the Bank of Japan should consider buying new government bonds that the US may issue to fund its 'war on terrorism'. "It is worth considering buying new bonds that the US government may issue to finance its campaign against terrorism," Yamasaki said, when asked whether the bank should buy foreign bonds to help ease monetary policy and weaken the yen. "A proposal by one BoJ policy board member to introduce price targeting is worth studying as long as there is a risk of Japan falling into a deflationary spiral. The bank should introduce the proposal if possible," he said. "The largest problem is that ample liquidity is not seen at the corporate level, only at financial institutions. I believe capital-injections should be considered to maintain banks' credibility," he added.