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refusnik

Bank Of Japan's 15 Trillion Yen Injection

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My stomach churns when I see the devastation scenes there. Nobody deserves that sort of thing but Japanese are the least as they are so hard-working folks.

In this situation BOJ "help" seems shocking - another wall of quick moving "money" is the least the country needs.

If the material wealth has been (literally!) wiped out by the sea then it is obvious as 1-2-3 that the market value of the economy must fall. Otherwise the whole idea of stock market has been turned on its head.

The financial elite there probably still feels like they can create everything out of nothing.

This is so cynical... Why wouldn't BOJ have another push with their magic powers and inject fresh water, food and lost lives into the affected areas? :angry:

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My stomach churns when I see the devastation scenes there. Nobody deserves that sort of thing but Japanese are the least as they are so hard-working folks.

In this situation BOJ "help" seems shocking - another wall of quick moving "money" is the least the country needs.

If the material wealth has been (literally!) wiped out by the sea then it is obvious as 1-2-3 that the market value of the economy must fall. Otherwise the whole idea of stock market has been turned on its head.

The financial elite there probably still feels like they can create everything out of nothing.

This is so cynical... Why wouldn't BOJ have another push with their magic powers and inject fresh water, food and lost lives into the affected areas? :angry:

Japan could even be headed for all out hyperinflation, I reckon. They seem to have decided that 'print your way out of trouble' is now the first thing you try when any challenging situation arises rather than a measure of last resort.

With a massive decrease in productive capacity/accumulated wealth as you point out corresponding with a massive increase in paper money it would seem that (at least) large scale inflation is extremely probable.

Still, high inflation would actually suit the Japanese govt and banking system very well as there is so much debt. I'm thinking that they may liquidate offshore assets to pay directly for the food and raw materials that they will need, thereby getting past the debasement of the currency (i.e. No need to pay with Yen, just sell your assets for dollars and use them to buy what you need).

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Japan could even be headed for all out hyperinflation, I reckon. They seem to have decided that 'print your way out of trouble' is now the first thing you try when any challenging situation arises rather than a measure of last resort.

With a massive decrease in productive capacity/accumulated wealth as you point out corresponding with a massive increase in paper money it would seem that (at least) large scale inflation is extremely probable.

Still, high inflation would actually suit the Japanese govt and banking system very well as there is so much debt. I'm thinking that they may liquidate offshore assets to pay directly for the food and raw materials that they will need, thereby getting past the debasement of the currency (i.e. No need to pay with Yen, just sell your assets for dollars and use them to buy what you need).

I nearly posted on Friday that this would be used an excuse for massive money printing to try to "reset" the JPN economy after a decade of relentless deflation.

But I thought it was more conspiraloon nonsense and a bit insensitive.

Probably was both of the above but still right!

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How much cash would get washed away/destroyed?

What are the implications of this material loss of physical currency?

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How much cash would get washed away/destroyed?

What are the implications of this material loss of physical currency?

Two days ago someone on the news was quick to report that economic impact of the disaster is estimated to be about £20bn.

It was logical then for BOJ to create £115bn of wealth overnight.

Japan has become reacher by £95bn as a result. Give or take a few zeros.

Edited by refusnik

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How much cash would get washed away/destroyed?

What are the implications of this material loss of physical currency?

That's an interesting point, and one very pertinent to Japan. Many Japanese people don't trust banks (who currently offer 0.1% if you're lucky) after the long line of bank crashes over the last 10 years, and keep their savings in a hiding place, or in the house safe.

There will be substantial loss of physical ichimanen notes.

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  • 312 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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