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Nikkei Futures Up Limit as BoJ Pledges Unwavering Determination for 2% Inflation
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2014 Oct 31, 3:51am 1,045 views 3 comments
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Bellingham Bill
2014 Nov 1, 1:03pm
I never miss the opportunity here to mention the moment when I realized the yen bouncing around 80 gave Japan's PTB an immense monetary cannon to boost their economy, should they choose to pull the trigger.
A too-strong currency is a solvable problem in our current fiat regime!
compares US's M2 (blue) vs Japan, scaled at a constant 360 yen to the dollar (the fixed postwar regime).
This shows how much printing Greenspan & Bernanke had been doing vs. the BOJ.
Bellingham Bill
2014 Nov 1, 1:21pm
"The BoJ will expand annual JGB purchases to 80 trillion yen,"
At ¥100 per dollar, that's $800B/yr in QE.
Per-capita, that's ~$500/mo of free money.
This is an interesting puzzle. The end-game has to be the yen sitting at 180-200 I guess.
Nikkei Futures Up Limit, Yen Collapses, Dollar Up, Gold Down as BoJ Pledges "Unwavering Determination" to Get 2% Inflation
http://globaleconomicanalysis.blogspot.com/2014/10/nikkei-futures-up-lock-limit-yen.html
Mish