"The Bank of Japan (BOJ) on Thursday unveiled sweeping changes
to its monetary policy, sending a clear message that it will pull out
all the stops to achieve a 2 percent inflation target in two years. But
will doing everything be enough?
Japan's central bank concluded a two-day policy meeting, arguably the most highly anticipated in years, with a commitment to double its government bond holdings in two years, adopt a new balance sheet target and combine two bond-buying schemes to allow it to buy government bonds of all maturities.
"This is very much the BOJ pulling out all the stops in trying to get that 2 percent inflation target," RBC Capital Markets Senior Economist James Ashley told CNBC. "They are putting in everything that they have; the kitchen sink is being thrown in along with everything else that's sitting in the kitchen as well."
Japan's economy, the world's third largest, has been dogged by falling prices for two decades and has slipped in and out of recession. And the BOJ has faced pressure from Prime Minister Shinzo Abe to adopt some bold monetary policy steps to kick start growth.
BoJ's Aggressive Moves
James Ashley, Senior Economist at RBC Capital Markets says the Bank of Japan is pulling out all the stops to achieve the 2% inflation target. He shares his analysis on the BoJ's latest policy announcements.
The meeting was the first to be held under new Governor Haruhiko Kuroda, who has pledged to do whatever it takes to achieve the 2 percent inflation target adopted by the BOJ in January.
Financial markets gave their swift verdict following the announcement: Japanese shares reversed their falls to close more than 2 percent higher, while the yen tumbled almost 2 percent to around 95.20 per dollar. " ---CNBC
The central bank announced its goal of attaining 2% inflation within two years by doubling the monetary base through buying government bonds and other securities. In other words, the BOJ is going all in and then some by expanding QE to an monthly $77.8 billion figure . US is printing $85 billion per month. Because Japan’s GDP is only 1/3 rd of US GDP.The BOJ QE is 3 times larger than ours all to depreciate their currency against the currencies of US , China and Euro countries. Where will this all end. Only in a currency war.As we have mentioned in our book, whenever a currency is devalued, Gold in that currency goes up. So Gold can save the savings of people in that country, otherwise their money goes to Money Heaven.
See the charts of Gold in yen in last 24 hours and in the last 6 months. This devaluation of currency will have major adverse effects on US exports to Asia and Europe.
TZA will continue to move up as US markets are on a slippery slope going down.
Since we bought TZA recently a few days ago, it has gone up 10% while most stocks are going down. Manipulation of DJIA continues every day. How long will they keep it up?
Japan's central bank concluded a two-day policy meeting, arguably the most highly anticipated in years, with a commitment to double its government bond holdings in two years, adopt a new balance sheet target and combine two bond-buying schemes to allow it to buy government bonds of all maturities.
"This is very much the BOJ pulling out all the stops in trying to get that 2 percent inflation target," RBC Capital Markets Senior Economist James Ashley told CNBC. "They are putting in everything that they have; the kitchen sink is being thrown in along with everything else that's sitting in the kitchen as well."
Japan's economy, the world's third largest, has been dogged by falling prices for two decades and has slipped in and out of recession. And the BOJ has faced pressure from Prime Minister Shinzo Abe to adopt some bold monetary policy steps to kick start growth.
BoJ's Aggressive Moves
James Ashley, Senior Economist at RBC Capital Markets says the Bank of Japan is pulling out all the stops to achieve the 2% inflation target. He shares his analysis on the BoJ's latest policy announcements.
The meeting was the first to be held under new Governor Haruhiko Kuroda, who has pledged to do whatever it takes to achieve the 2 percent inflation target adopted by the BOJ in January.
Financial markets gave their swift verdict following the announcement: Japanese shares reversed their falls to close more than 2 percent higher, while the yen tumbled almost 2 percent to around 95.20 per dollar. " ---CNBC
The central bank announced its goal of attaining 2% inflation within two years by doubling the monetary base through buying government bonds and other securities. In other words, the BOJ is going all in and then some by expanding QE to an monthly $77.8 billion figure . US is printing $85 billion per month. Because Japan’s GDP is only 1/3 rd of US GDP.The BOJ QE is 3 times larger than ours all to depreciate their currency against the currencies of US , China and Euro countries. Where will this all end. Only in a currency war.As we have mentioned in our book, whenever a currency is devalued, Gold in that currency goes up. So Gold can save the savings of people in that country, otherwise their money goes to Money Heaven.
See the charts of Gold in yen in last 24 hours and in the last 6 months. This devaluation of currency will have major adverse effects on US exports to Asia and Europe.
TZA will continue to move up as US markets are on a slippery slope going down.
Since we bought TZA recently a few days ago, it has gone up 10% while most stocks are going down. Manipulation of DJIA continues every day. How long will they keep it up?
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