The Financial Times tweets (regarding the Bank of Japan’s decision to print a whole stack of Yen every day, Zimbabwe style):
— Financial Times (@FinancialTimes) April 4, 2013
Dramatic policy change? Seriously? This has been a long time coming, been warning about this for years.
The Japanese have no choice, foreigners aren’t piling their savings into the country to finance the government’s borrowing. The rest of the world also don’t have the appetite they had before to buy Japanese stuff. So Japan either has to tax the cr@p out of its people, or get the Bank of Japan to start printing money, for the government to spend.
Next up, much higher price inflation for Japan, JPY weakness and higher interest rates.