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Realistbear

Japan Takes Q E Option

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http://uk.finance.yahoo.com/news/japan-renews-qe-as-recovery-falters-tele-f61a14d0a2d2.html?x=0

Japan renews QE as recovery falters

Ambrose Evans-Pritchard, 20:22, Monday 30 August 2010
Japan has launched a fresh monetary and fiscal boost to shore up its faltering recovery and stem the slide into
deflation
, becoming the first major country to inject further stimulus since the Great Recession ended.
The Bank of Japan agreed at an emergency meeting to boost its special loan facility by ¥10 trillion to ¥30 trillion (£22.7bn). "We need to watch out more carefully for downside risks to Japan's economy," said Governor Masaaki Shirakawa, who cut off his trip to the Jackson Hole forum in the US.

Global recession is just a kiss away.

Wondering whether to stick with my bond investments or go to cash.

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TAIPEI (
Reuters
) - Fears that policymakers around the world will be slow to support the flagging global recovery
lifted the yen on Tuesday
, weighed on Asian and European stocks and gave further fuel to a five-month rally in U.S. and Japanese government bonds.

QE seems to have backfired for the Japanese as the Yen took off in the wrong direction. Perhaps the market is simply saying its time to bail out of everything and go to cash. I took a look at the make-up of the largest bond funds recently and see that PIMCO has more than 40% in cash. This is a strange brew as large moves into cash, especially currencies issued by nations experiencing deflation such as the US and Japan, would normally bode well for bonds. So why is PIMCO so heavily into cash holdings? Perhaps its a hedge against a worse-case scenario: a global stock meltdown? Hindenburg stuff.

Edited by Realistbear

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TAIPEI (
Reuters
) - Fears that policymakers around the world will be slow to support the flagging global recovery
lifted the yen on Tuesday
, weighed on Asian and European stocks and gave further fuel to a five-month rally in U.S. and Japanese government bonds.

QE seems to have backfired for the Japanese as the Yen took off in the wrong direction. Perhaps the market is simply saying its time to bail out of everything and go to cash. I took a look at the make-up of the largest bond funds recently and see that PIMCO has more than 40% in cash. This is a strange brew as large moves into cash, especially currencies issued by nations experiencing deflation such as the US and Japan, would normally bode well for bonds. So why is PIMCO so heavily into cash holdings? Perhaps its a hedge against a worse-case scenario: a global stock meltdown? Hindenburg stuff.

Yeah that's funny, 5 years ago the BOJ could pull the levers and make the Yen weaken at will. Mu ha ha...ha ha etc.

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They called a whole emergency meeting and all we got was 100 billion USD worth, and this T-shirt. Not surprisingly the yen is strengthening and the Nikkei heading down again.

Like they are going to have to come up with a lot more than that to get out of deflation.

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So why IS the yen so strong?

Usual reasons I guess.

They generally run a trade surplus.

Government debt held by locals.(almost entirely)

Profits made by Japanese companies are returned home...converted into Yen.

This situation will continue until they are hit by a couple of bombs as usual. I give it 1 to 4 years.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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