Jump to content
House Price Crash Forum

The Sumo Japan Qe Thread


Recommended Posts

0
HOLA441
  • Replies 1.3k
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
2
HOLA443
Japan comes out of a recession _81028813_japan.jpg

Japan came out of a recession in the fourth quarter of last year, but the world's third largest economy grew at a slower than expected pace.

Relief all round.....

Link to comment
Share on other sites

3
HOLA444
4
HOLA445
5
HOLA446
31st Japanese Trade Deficit In A Row, Longest Stretch In 60 Years

20150218_Japan.jpg

With seasonal adjustments wreaking havoc on the data, Japanese imports (collapsed 9% YoY) and exports (soared 17% YoY), leaving Japan with a trillion-yen deficit. This is the 31st month in a row... the longest stretch since 1954...

Link to comment
Share on other sites

6
HOLA447
7
HOLA448
Japan January inflation seen easing, factory output up; BOJ sits tight

TOKYO - Japan's core inflation is seen slowing for a sixth month in January while factory output is expected to rise, underlining the policy challenge facing the Bank of Japan as it strives to speed up economic growth and achieve its 2 percent price target.

Link to comment
Share on other sites

8
HOLA449
  • 3 weeks later...
9
HOLA4410
10
HOLA4411
11
HOLA4412
12
HOLA4413

Japan still f***ed after two years of QQE says Corroder, chief Keynesian berk at the BoJ.

The Japanese economy is in danger of slipping back into deflation despite two years of intensive monetary action, the country's central bank governor has warned.

Haruhiko Kuroda, head of the Bank of Japan, said the falling price of oil would push consumer prices back into negative territory later this year.

Core consumer inflation currently stands at 0.2pc, well below the Bank's mandated 2pc target. Prices are now "moving to around zero percent for the time being on declines in energy prices" cautioned the Bank.

Despite the downgrade to inflation expectations, the central bank decided to hold interest rates but continue with its aggressive quantitative easing programme.

"There's absolutely no change to our stance of aiming to achieve our 2pc inflation target at the earliest date possible with a timeframe of roughly two years," said Mr Kuroda.

The country launched one of the most radical experiments in monetary policy last year, carrying out asset purchases worth 80 trillion yen (£444bn) a year in a bid to revive growth and flagging prices.

But there are doubts that the central bank will be able to raise stoke inflation amid weak global demand and collapsing energy prices.

April's headline inflation numbers are likely to take a further plunge as they will include the effects of a higher sales tax, warn Capital Economics.

http://www.telegraph.co.uk/finance/economics/11476624/Japan-will-struggle-to-slay-deflation-warns-Bank-governor.html

Link to comment
Share on other sites

13
HOLA4414
14
HOLA4415
15
HOLA4416
Japanese Pension Funds Dive Into Stocks To "Increase Risk-Taking"

Pension.png

"The GPIF in October slashed its targeted holdings of low-yielding government bonds and doubled its target for stocks, as part of Prime Minister Shinzo Abe's plan to boost the economy and promote risk-taking," Bloomberg notes, marking a shift into risk assets by the country's pension funds.

Still I'm sure a crash in stock prices won't cause a problem.....

Link to comment
Share on other sites

16
HOLA4417

http://www.merkinvestments.com/insights/2015/2015-03-03.php

Is Japan Zimbabwe? How preposterous: Japan is an advanced economy that cannot possibly suffer the same fate as Zimbabwe. Right? Or could Japan get hyperinflation? Below I explain why Japan, and with it investors’ portfolios, might be at risk.

The other day, when I was on a panel discussing unsustainable deficits in the U.S., Eurozone and Japan, the risk of inflation and Zimbabwe style hyperinflation came up. When asked about the difference about Japan and Zimbabwe, I quipped that there isn’t any. My co-panelists were all over me, arguing Japan is different. Notably that Japan could not possibly go broke because, unlike Zimbabwe, it’s an advanced economy. The argument being that Japan produces goods the world wants.

To be clear: Zimbabwe and Japan are not the same. But are they really that different? Zimbabwe not only had a much weaker economy, but also much weaker institutions. But the old adage that something unsustainable won’t last forever may still hold.

The difference between Zimbabwe and Japan – and Europe and the U.S. for that matter – is that advanced economies have more control over their destiny. However, all these regions have made commitments they cannot keep by continuing business as usual. A weak country may simply implode. A strong country has choices. The preferred choice these days appears to be to kick the proverbial can down the road.

Currently, to get the country out of its malaise, Japan is trying the three arrows of Abenomics, a combination of government spending, monetary easing and structural reform. Except, of course, when the first two arrows are deployed, there’s little incentive left for the third. Structural reform is a codename for the tough choices that need to be made to get an economy to be more competitive, including flexible labor markets and less regulation.

Because the Bank of Japan gobbles up dramatic amounts of debt, the cost of financing government spending stays low. It’s been said that a country that issues debt in its own currency cannot go broke. Theoretically that may be correct: the central bank can always monetize the debt, i.e. buy up any new debt being issued. But in practice, there has to be a valve. In my assessment, that valve is the currency. Hence my prediction is that the yen will reach “infinity” versus the dollar (a ‘higher’ yen represents a weaker currency), i.e. be worthless at some point.

..

Back to Japan: Japan can continue on its current course as long as the market lets it. It’s impossible to predict if and when the market might lose confidence. The Eurozone debt crisis has shown that sentiment can switch rather suddenly, even for countries with fairly prudent long-term debt management, such as Portugal or Spain. It may be naïve at best to think that there will be plenty of warning should market sentiment shift.

As long as people believe Japan's currency has "value" it can print as much as it wants.

Link to comment
Share on other sites

17
HOLA4418
Japan finance minister urges BOJ to be mindful of weak-yen risks

TOKYO - Japanese Finance Minister Taro Aso urged the central bank on Tuesday to be mindful of the risk of causing sharp, unwelcome falls in the yen when it decides on whether to expand its already radical stimulus programme.

Japan 7:18am GMT
Japan finance minister says would be desirable for AIIB to work with ADB

TOKYO - Japanese Finance Minister Taro Aso said on Tuesday it would be desirable if the China-backed Asian Infrastructure Investment Bank (AIIB) could work with the Asian Development Bank (ADB) in meeting growing demand for infrastructure financing in Asia.

Link to comment
Share on other sites

18
HOLA4419

http://www.bbc.co.uk/news/business-32013613

Every lesson at Japanese schools starts with a simultaneous bow. "Let's try that again because your posture wasn't good," says a teacher to a room full of six and seven year-olds.

She then reminds the children to have their pencil boxes, notepads and textbooks on top of each other and placed at the left corner of their desks. The students obey without a single word of objection.

A few hours later, they queue quietly before being served their lunch.

Towards the end of their education this conformist attitude is still evident. Each year, more than half a million university students start looking for work together.

The first step is to perfect a handwritten resume, or CV, because many in Japan believe that students' characteristics and personalities can be judged by the way they write.

All dressed in a black "recruit suit", they then visit hundreds of companies. Bold hues of black, navy or dark grey are the recommended colours for their job-hunting suits.

Stripes are not encouraged. According to the teachers and career counsellors, it is considered risky to be fashionable.

Conformity killing Japan??

Link to comment
Share on other sites

19
HOLA4420
Japan's Pacific Rim Job: Build 250-Mile Anti-Tsunami Wall To Create Jobs

20150323_pacrim.jpg

It appears Japanese policy-makers are getting inspiration from Hollywood for their latest economic 'fixes'. Having begun the building of a giant 'Game of Thrones'-esque ice-wall to hold back the radiation leaking from Fukushima (only to fail miserably); AP reports the latest cunning plan from the Japanese is to build a Pacific-Rim-esque "massive, costly sea wall to fend off tsunamis." The $6.8 billion, 250-mile-long, 41-foot-high concrete barrier public works project is seen by some as a necessary evil, and by others as a jail... Perhaps The UN's head of Disaster Risk Reduction summed it up best - "There's a bit of an over-belief in technology as a solution."

Link to comment
Share on other sites

20
HOLA4421
Bank Of Japan's 10 Trillion Equity Portfolio "Not Large" Says Bank Of Japan

Kuroda.png

"The central bank's portfolio has a book value of around 5.7 trillion yen. But soaring share prices have lifted its market value past the 10 trillion yen mark -- nearly 2% of the tally for all Tokyo Stock Exchange shares," Nikkei notes. While this may seem like a lot, Haruhiko Kuroda begs to differ.

Not entirely sure why a central bank should have a share portfolio...

Link to comment
Share on other sites

21
HOLA4422
22
HOLA4423
23
HOLA4424
24
HOLA4425

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information