Skip to comments.Japan Eases Monetary Policy in Surprise Move
Posted on 09/19/2012 12:16:36 PM PDT by John W
TOKYOThe 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 economyand stimulating demandis buying government bonds and other securities.
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Close. Surprise move at surprising speed.
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.
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?
If the US dollar shrinks the Japanese Yen just has to go that much lower.
This tells us more bad news is on the way.
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)
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.
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.