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Boj Member Discovers History And That It Might Repeat

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It appears not only Bill Gross is insane enough to realize that direct monetization = inevitable interest rate hike. Slowly, even the central banks are starting to gravitate toward this conclusion. From The just released minutes by the BOJ: "One member -- referring to some recent views that the Bank should underwrite JGBs to fund restoration and rebuilding -- expressed the opinion that such an action might initially seem to work well, but lessons drawn from history showed that it would eventually result in severe inflation and thereby inflict substantial damage on people's living situation. This member continued that the Bank needed to keep working to gain the wider public's understanding on this point. In relation to this, a few members expressed the view that, if confidence in the currency were impaired due to underwriting of JGBs by the Bank as the central bank, this might lead to a rise in long-term interest rates or instability in financial markets, and hamper the smooth issuance of JGBs." Something tells us this "member" was not Bernanke (aside from the obvious reason that Benny is a gaijin). And where else, we wonder, have we seen this: an initial boost which fades away, leaving just concerns about runaway inflation. Is it possible that the dissident BOJ member can come to one or more FOMC meetings and actually give our clowns a first person perspective of how this whole "deflation battle" goes down 30 years in.

Full Minutes


Still history never repeats, this time it's the evil speculators triggering the commodity price spike...

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Very strange how a truthful assessment never seems to surprise, only that it was actually said in a publicly reported way. No doubt speculators will see off the commodity boom and inflation will disappear....only to reappear as a result of debt fuelled printing or electronic central bank crediting...issue debt, buy it back with the flick of a switch. Too easy. Unsustainable..??

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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
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      • up 5%

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