The Financial Times tweets (regarding the Bank of Japan’s decision to print a whole stack of Yen every day, Zimbabwe style):
Read for free: Explained – the Bank of #Japan‘s dramatic policy change on.ft.com/14QaBlu via @ftworldnews
— 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.
My predictions and analysis of why the Bank of Japan are doing what they’re doing on this blog (also free), here and here.
Next up, much higher price inflation for Japan, JPY weakness and higher interest rates.