BOJ Haruhiko Kuroda japan Markets yen

Tokyo Whale Achieves Dubious Milestone As BoJ’s Balance Sheet Tops Japan’s GDP

"Very powerful" easing indeed.

"Very powerful" easing indeed.
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1 comment on “Tokyo Whale Achieves Dubious Milestone As BoJ’s Balance Sheet Tops Japan’s GDP

  1. Don’t these “idiots” know that CB asset purchases do not cause inflation unless monetized (in YEN in the case of Japan)? The way a government creates domestic inflation is to print money by spending on domestic programs, not buy JGBs which create cash which is used to push down the currency in support of the export driven economy. ECON 101.

    Me thinks the Japanese actually do understand this; but I wonder about the American financial press. The BOJ asset purchases are most correlated with the rise of the US stock market, and in particular the NASDAQ and FAANG stocks over the past 2-4 years. Now that the BOJ has little choice but to level of if not reverse its asset buying open market policy, that sound you hear is a financial dam breaking courtesy of the imbalances in the international trade world – imbalances which by the way were not started by Trump. He is attempting to reverse a very unstable financial mess started 25 years ago when China devalued the Yuan by 30% and pegged it to the dollar since that time with the very strong encouragement of the Clinton’s and Wall Street. The time bomb left from this “stable genius” policy is that if the US wants to adjust its trade policy for the benefit of its own working class, SE Asia can / will revolt and tank the US / World financial system in the process. Meanwhile, income levels in the US continue to decline, unless you are on the right side of the trade on Wall Street.

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