Friday, 5 April 2013

Japan to double Monetary Base - $1.4 Trillion QE - Currency Crisis to Follow?

Retuters Report - HERE

Kyle Bass - Currency Crisis forecast - HERE
Reuters : The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economyin less than two years, a radical gamble that sent the yen reeling and bond yields to record lows..................more...................
New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014, a dose of shock therapy officials hope will end two decades of stagnation.
The policy was viewed as a radical gamble to boost growth and lift inflation expectations and is unmatched in scope even by the U.S. Federal Reserve's own quantitative easing program.
The Fed may buy more debt, but since Japan's economy is about one-third the size of the economy, Kuroda's plan looks even bolder.
"This is an unprecedented degree of monetary easing," a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.

Bass : What they're trying to do is materially devalue the currency in order to become slightly more trade competitive while attempting to hold their rates marketplace flat,” Bass said.  “The economists and central bankers believe they can live in that nirvana, and I believe that is not the case. I think they will end up losing control of (interest) rates,” he added. 

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