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politics

Japan drifts back to money printing to battle pandemic

19 Comments
By Leika Kihara

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19 Comments
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The next task is to restore confidence among firms and households, so they start spending and stimulate growth. I’m not sure whether the BOJ has any tools left to do this.”

That's the Governments Job, and they have proved to be woefully out of their depth on that one.

6 ( +7 / -1 )

Stagflation coming..,

6 ( +7 / -1 )

In reality, the government doesn’t have to print money. It can create money out of thin air with just a few strokes over the keyboard.

12 ( +12 / -0 )

It can create money out of thin air with just a few strokes over the keyboard.

That's been the reality for most countries since 1972, when Nixon took the US dollar off the gold standard.

That's the Governments Job, and they have proved to be woefully out of their depth on that one.

if the government and BOJ hadn't rolled out these programs, the economy would now be in a state of collapse. Blame lies with the virus and the people who made it jump from bats to humans.

-2 ( +6 / -8 )

Blame lies with the guys who dick around with money. Tricky Dicky taking the dollar off the gold standard and the Japanese mint printing paper money with nothing to back it up. Soon, a can of beer is going to be ¥20,000. This doesn't solve anything. It literally passes the buck and passes the problem on.

Invalid CSRF

5 ( +8 / -3 )

I have not received the 100,000 yen as of yet and applied for that 2 weeks ago.

8 ( +8 / -0 )

Abenomics hasn’t made my neighbors richer!

No new cars, no fancy clothes, not even new bicycles or scooters...

Companies won’t drop prices and wages don’t increase, unemployment rises...i

12 ( +14 / -2 )

Every debt has to be serviced, as simple as counting from one to ten.

So, to review Japan debt servicing 2017…. Good place to start….

https://www.mof.go.jp/english/budget/budget/fy2017/04.pdf

Now finch review…….Apr, 2020…..

Fitch Wire

Japan's Coronavirus Response Increases Public Debt Challenge…..

https://www.fitchratings.com/research/sovereigns/japan-coronavirus-response-increases-public-debt-challenge-15-04-2020

Even reviewing MOF numbers…. March 31 2020….

https://www.mof.go.jp/english/jgbs/reference/gbb/e202003.html

Quantifying current predictions/projections without reform/restructure.

Government of Japan will fail too be able, fiscal/monetary ability to service that debt mountain beyond 2026.

Default, on their own people, pensions, health care, energy, social services, education…..  etc etc  

There is no such entity/monetary/fiscal reality that can justify or countenance money printing, it is a myth.

Think, I print off how many hundred thousand yen?

On my trusty printer. Why would any retailer except my “currency” any more than a Government attempting the same deception?

On default, Global exporters will demand the Government of Japan complete transactions from there foreign current reserves.

Until zero……  then the poo its the fan.

4 ( +5 / -1 )

Does anyone see the issue here?

Japan isn't even trying to "battle the pandemic" yet is printing money to save the economy. Why not just do the proper testing, rebuilding consumer confidence and prosper.

All I see is a bunch of old servants sitting in the Diet making up stories about the situation, just have some courage and address the issue.

5 ( +8 / -3 )

Yield curve control, aka negative interest rates, should only be contemplated as a last resort and temporary expedient, not the Titanic deck chair shifting centerpiece of a palpably failed economic policy that with every creative accounting measure strays dangerously into moral hazard territory. Thrifty savers who’ve accumulated extra as a hedge, find the only way to make money on their money is to abandon prudence and gamble on speculative investments that exist only because interest rates have been effectively removed as an efficient tool of capital allocation. The invisible hand has been replaced by an all too fallible human one.

2 ( +3 / -1 )

Ashley Shiba you didn't receive yet because they still printing it!

3 ( +3 / -0 )

"...drifts back to..." ? It never slowed down. Invalid CSRF

1 ( +1 / -0 )

Long range forcasts show a very bad world wide economic situation later this year.

1 ( +1 / -0 )

The Central Banks have all the power not the government per say. The can create and burst bubbles at will. They control the economy, and so the world.

Japan is, and has been, the only country to get away with printing their way out of deep recessions because they own most (about 90%) of their own dept.

Other countries (ege. USA) who try this will fail due to the above stated. If the US has to resort to this it will most likely make the dollar rise to unprecedented highs and the crumbling will start and spread leaving nonwhere unscathed. BUT hey, what do I, or anyone else know, we have never in recorded history been in this situation.

0 ( +1 / -1 )

Silly headline. They have never stopped printing to - in their view - keep the economy going. It will end badly.

-1 ( +0 / -1 )

“The next task is to restore confidence among firms and households, so they start spending and stimulate growth.

A lot of households have little confidence because the government has racked up such huge debts, and this think it better to save for the gloom of the future than spend with wild abandon now.

-1 ( +0 / -1 )

Debt, schmebt. The doomsday fiscal smarty pants have been wrong for 40 years. Can't even get out of deflation, but let's cower in the corner about end-of-the-world inflation.

1 ( +3 / -2 )

@faxgai

A lot of households have little confidence because the government has racked up such huge debts,

Got any evidence on that? If "households have little confidence," it's mainly because their private sector employers are keeping a larger share of income for themselves giving less to their workers.

-1 ( +0 / -1 )

Yeah they're printing trillions but they're also burning trillions.

Every time a financial institution like Mitsubishi UFJ or JapanPost deposits with the BOJ the BOJ "burns" that cash (effectively deleting it from the money supply).

They are burning more than they are printing, hence the deflation.

1 ( +1 / -0 )

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