Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Japan Eases Monetary Policy in Surprise Move
wsj.com ^ | September19, 2012 | MEGUMI FUJIKAWA And TATSUO ITO

Posted on 09/19/2012 12:16:36 PM PDT by John W

TOKYO—The Bank of Japan announced an aggressive expansion of its monetary-easing program, acting with surprising speed after its analysis suggested that any economic recovery is at least six months away amid a global slowdown.

The BOJ's move Wednesday follows similar actions by other major central banks. The Federal Reserve last week announced another round of quantitative easing, and earlier this month the European Central Bank established an open-ended program sovereign debt buying program in an attempt to end the euro crisis.

The BOJ policy board Wednesday increased the size of its asset-purchase program to ¥80 trillion ($1.01 trillion) from ¥70 trillion, and extended its deadline by six months to the end of 2013. With interest rates near zero, the central bank's main tool for pumping money into the economy—and stimulating demand—is buying government bonds and other securities.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Japan; News/Current Events
KEYWORDS:

1 posted on 09/19/2012 12:16:39 PM PDT by John W
[ Post Reply | Private Reply | View Replies]

To: John W

Unexpected?


2 posted on 09/19/2012 12:19:31 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 1 | View Replies]

To: 1rudeboy

Close. Surprise move at surprising speed.


3 posted on 09/19/2012 12:23:06 PM PDT by John W (Viva Cristo Rey!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: John W

Demand comes from having both disposable income as well as some sense of financial security. When the people have neither, the more the government spends the more security is REDUCED.

Looks like Obozos theory on destroying the world economy is catching on.

Wonderful.


4 posted on 09/19/2012 12:34:52 PM PDT by datura
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Yeah, that was a real surprise.

Who would have guessed the Japanese would do the same after Helicopter Ben took off and started dropping those newly printed dollars from the skies?


5 posted on 09/19/2012 12:54:13 PM PDT by mojito
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W
The Japanese merchantilists have always counted on a cheap Yen to expand trade with the US and move industry to Japan.

If the US dollar shrinks the Japanese Yen just has to go that much lower.

6 posted on 09/19/2012 12:59:02 PM PDT by Last Dakotan
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

This tells us more bad news is on the way.


7 posted on 09/19/2012 1:06:37 PM PDT by arrogantsob (The Disaster MUST Go. Sarah herself supports Romney.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

So, this means that we are in a global race to see who can print the most money in the shortest period of time? Luckily, nothing bad can come from this. (/s)


8 posted on 09/19/2012 1:19:05 PM PDT by jim_trent
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Japan figured out currency manipulation as the key to winning global trade in the 80s with ZIRP and keeping their currency artificially weaker than the dollar by building up FOREX reserves, then China overwhelmed them in the 90s with larger currency muscle to pull global trade into their country with giant FOREX reserves, and now the FED has decided to use ZIRP and monetization to use the “largest” currency muscle in the world to overcome exponential debt growth and fantasy ponzi finances. This will force everyone else to fire up the printing presses to maintain the current status qou of the USA borrowing 500 billion a year from our “trade” partners to buy stuff from them as they must keep the dollar strong with respect to their currencies to continue business as usual.

It sounds good that we might actually turn the tide in currency manipulation to reverse our trade imbalance, but we are the worlds largest debtor and doing this out of a position of weakness not economic strength. It does however show that the current manipulation of global trade through FOREX reserves of the dollar is about to end thanks to trillions of new dollars being created out of thin air by the FED in its desperation to save the over-leveraged broken corrupt financial system.


9 posted on 09/19/2012 2:30:16 PM PDT by Gen-X-Dad
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gen-X-Dad
Japan figured out currency manipulation as the key to winning global trade in the 80s with ZIRP and keeping their currency artificially weaker than the dollar by building up FOREX reserves

You sure about that?

Looks like they started the 80s with 250 Yen to the dollar and ended the 80s with about 150 Yen to the dollar. Now they're 80 Yen to the dollar.

If they have a weak Yen policy, they must be doing it wrong.

10 posted on 09/19/2012 3:33:50 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: John W
What was the name of the Japanese finance minister that recently committed hari kari? He was distraught over something...

5.56mm

11 posted on 09/19/2012 3:42:55 PM PDT by M Kehoe
[ Post Reply | Private Reply | To 1 | View Replies]

To: Toddsterpatriot
China undercut Japan to takeover the trade crown from Japan in the 90s, as they merely duplicated what Japan was doing on a much larger scale with the USD/Euro. China made sure they were the cheap supplier of choice in global trade by also keeping the Yen strong.
The yen is only 4% of world FOREX reserves, so it doesn't take much to maintain a strong yen vs. the dollar as part of China's FOREX strategy. This is one of the reasons Japan is not happy with China. On top of that, the FED is also helping by devaluing our currency. Japan is basically a bantamweight between two heavyweights fighting it out.
12 posted on 09/20/2012 11:55:10 AM PDT by Gen-X-Dad
[ Post Reply | Private Reply | To 10 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson