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40% of firms want BOJ to scale down monetary easing: survey


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Because they see the awful impact of this lunacy

0 ( +1 / -1 )

39.6 percent called for a scaling back....while 36.4 percent said the central bank should maintain its current policy...

Um, the two groups are close to the same size.

6.4 percent were in favor of tightening the easing policy

Not sure how "tightening" is different from "scaling back" loose policy.

-1 ( +0 / -1 )

Hell, no. Bank of Japan and Japan Inc won't allow to scale down monetary easing.

Raising interest rates is a declaration of insolvency even though most of the debt is Japanese. This fact won't sit well with international creditors and banks. S&P, Moody, and Fitch have declared that they will downgrade Japan to the speculative level if this happens. Most Japanese people have largely offshored their businesses out of Japan, and they're reliant on international creditors. If Japan gets downgraded, overseas Japanese companies can't use JGBs as collateral to secure loans. Overseas Japanese companies will be forced to withdraw back to Japan, lose markets to international competitors, and can't secure resources/earn foreign currencies for the island.

40% of these firms are delusional to believe that the BoJ will stop. They are also delusional to believe that the scale-down will solve Japan's economic malaise. Believe it or not, Abenomics will march on. Permanent inflation will go hyper within this decade but it won't be sudden. It will be stealthy in the eyes of wealthy foreign elites in Japan and painful for Japanese natives.

-3 ( +1 / -4 )

Everything more expensive and no legislation designed to aid the populace.

Companies can move their manufacturing and procedures out of Japan but the average Hiroshi and Yuko will go down with the ship….

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Not sure how "tightening" is different from "scaling back" loose policy.

Imagine the accelerator of a car.

With lighter pressure on the accelerator, the rate of acceleration can slow, but the car’s speed can continue to increase.

Hitting the breaks, on the other hand, actually slows the car down.

Recently the BOJ has been in the news for buying record amounts of JGBs, so in terms of money printing it has actually accelerated.

This was perhaps not what the central planners had anticipated would happen (otherwise they might not have enacted their crazy policies in the first place).

-1 ( +0 / -1 )

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