Dropping global bond yields, recession fears put BOJ in a bind

By Leika Kihara

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Even with rates going negative the BOJ is toothless?


2 ( +2 / -0 )

Let me get this straight.

boj has been printing aimlessly for six straight years all the while hoping for that magical 2% without fixing the actual reasons why that doesn't happen? Isn't that akin to rubbing a lamp and hoping a genie pops out to grant wishes?

The only way to stop yield falls is to dramatically trim bond buying. But that's hard to do because the BOJ also promises to increase money printing

And round and around and around we go. What's that definition of insanity again?

3 ( +3 / -0 )

The problem is the current system is premised on population growth.

2 ( +2 / -0 )

I'm tired of this writer who for the past 5 years has routinely been writing along the lines that the BOJ "is in a bind." So many "binds" over so many years, surely things would have been bound up by now?

"The BOJ has flooded the economy with money since 2013...."

That's really misleading. The central bank at the same time DRAINS an equivalent value of bonds OUT of the system. Such descriptions that focus on one flow while ignoring the counterflow have created a public misconception, which is why everyone (except me) for so long predicted QE would trigger high levels of inflation and destroy the yen.

Yep, so in reality we end up with modest inflation and the world's safe-haven currency, not that the boffins and pundits would ever admit they don't understand QE.

0 ( +0 / -0 )

@JeffLee... don't forget the Consumption Tax increase due in October....

0 ( +0 / -0 )

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