What’s BOJ‘s Kuroda sans endgame with basically ignoring worldwide inflation?

7 comments

1. BOJ is a one-trick pony. Govt needs to make subsidies to consumers or small businesses not banks. Needs to sway normal consumers from sitting on their money. Nothing before the election.

2. Do you believe this is inflation because of excess demand or because supply chains are limited?

   In case of excess demand then you are correct,

   In case of limited supply chains, making capital cheaper is a fantastic way for Japan to shore up manufacturing and encourage investment in to increase supply

3. In BS of Bank of Japan, GB is 532trillion JPY, Duration is 9 years.

   If jacked up interest rate, PL will blow away.

   So BOJ will keep low interest rate for BS made by idiots.

   No matter how inflation goes on climbing.

4. Pretty sure their general modus operandi is for them to keep their heads in the sand until the problem (hopefully) fixes itself

5. Cheap credit is literally what makes the fiat wheel spin. x10 for asian economies (more like x10 million for china). Take that away and you will not like what happens.

6. What was the end game before? Equally misguided, slow and archaic. there is a reason why the Japan economy had been in the toilet since the bubble burst. Lack of direction and failure to change and adapt.

7. His endgame is going home each day. You’re thinking about it too hard. He has no plan other than to stick around.