Starting off a little early to give the latest update on the money explosion in Japan.
Fukui: Govt FX Steps Consistent With BOJ Policy
DOW JONES NEWSWIRES
TOKYO -- The Bank of Japan won't end its current ultra-easy monetary policy until the economy is ready, although it hopes to overcome deflation soon so that it can end the current "abnormal" policy, BOJ Governor Toshihiko Fukui said Tuesday.
"Quantitative easing is an unprecedented policy," Fukui told a Lower House financial committee. "We want to succeed in fighting deflation so that we can graduate from this abnormal policy, and return to normal (policies) of interest rate adjustments"
True to this story, the BOJ is pushing the limits of its quantitative easing. The Bank of Japan and the Ministry of Finance, based on figures released today Tokyo time, are putting the petal to the metal on the electronic printing presses as the month draws to a close. They intend to finish out the quarter with the fastest quarterly expansion rate of a monetary base in the history of G-7 (about 30% annualized - that is if you count the BOJ and MOF tag-team together like two central banks). This is very supportive for gold and silver.
On the other hand, the Fed is playing see-saw with the Japanese and seems to withdraw money from the repo pool with every sign the BOJ/MOF is moving faster.
This is causing great problems for the US stock market, especially as most of the new yen created this month no longer flows to the US markets like it did in Jan/Feb.
April could send the market on down a highway to hell if the BOJ/MOF decides to give the electronic printing presses a rest. All bears should make their preparations by then for the fireworks.
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