Posted on 04/04/2013 10:18:38 PM PDT by bruinbirdman
The Bank of Japan has launched the most daring monetary experiment of modern times, aiming to double the money base within two years to overpower deflation and catapult the economy out of slump.
The blast of money is expected to reignite the yen “carry trade” and flood global markets with up to $2 trillion (£1.3 trillion) of pent-up savings, giving the entire world a shot in the arm.
The BoJ’s new team under governor Haruhiko Kuroda voted 8:1 for a double dose of “quantitative and qualitative monetary easing”, vowing to inject stimulus for “as long as it takes” to break the deflation psychology.
“This will be recorded in economic history books as a watershed in central bank action. Investors should be shocked and awed,” said Stephen Jen from SLJ Macro Partners.
The monetary base will rocket from 29pc to 56pc of GDP by 2014. The pace of bond purchases will rise to 7.5 trillion yen (£53bn) a month, almost three times the US Federal Reserve’s stimulus as a share of the economy. The maturities will stretch to 40 years, ending the three-year cap that has hobbled policy for a decade.
“This is a huge sum. It could set off a rip-roaring economic boom if they buy the bonds from insurance companies and boost broad money by 10pc over the next year,” said Tim Congdon from International Monetary Research.
Mr Kuroda said the bank had taken “all available steps” to meet its new target of 2pc inflation within two years. “This is an unprecedented degree of monetary easing,” he said.
The scale of action caught markets off guard, sending 10-year bond yields tumbling to an all-time low of 0.44pc. The yen weakened three “big numbers” to 96 yen against the dollar, in the biggest one-day move for
(Excerpt) Read more at telegraph.co.uk ...
Zimbabwean central banker Gideon Gono had no comment.
Weimar Germany sounds good to them?
Helicopter Ben Bernanke got nothing on this guy
ping
ping
Trump said it best “If you owe the bank thousands (a small amount), then the bank owns you. If you owe the bank millions (a large amount), then you own the bank.”
Anyone in Japan with savings better spend it NOW
I thought Japan was good with math. sarc
The ONLY option left is All Out War. QE is totally out of control and can’t be unwound. Some country is gonna lash out out of fear of losing it all.
That's the message. Gold wouldn't be a bad idea. The last Nippon bubble was real estate. That didn't turn out well.
yitbos
This is proof of the active Japanese fantasy life. More active than ours
Now they are perverted economically too
just japan’s turn in round-robin international high finance, QE(n) gang rape of individual families’ hard earned wealth. but then they all have to destroy the “free market” to save it, don’t they?
In other news; convicts on Death Row get a shot in the arm.
-——This will be recorded in economic history books as a watershed in central bank action———
—Helicopter Ben Bernanke got nothing on this guy——
It would seem from the above that he has outdone Ben. I can’t quantify the action to determine who actually did more but my first impression is that the Japanese are following the American lead........ except perhaps more so.
Wow.
Let’s us start up the fires of INFLATION.
How could that go wrong??
The Japanese are not starting the inflation, they are merely catching up with us and the Europeans.
The fires have been burning for quite some time. The appearance of Richard Trumka in New York yesterday to protest wages of fast food Blacks was in fact attempting to light the inflation fire there.
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