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Japanese PM Shinzo Abe is reportedly set to nominate Asian Development Bank President Haruhiko...

Japanese PM Shinzo Abe is reportedly set to nominate Asian Development Bank President Haruhiko Kuroda as BOJ Governor. It's hard to think of a bigger dove. "The Bank of Japan must be prepared to do anything and everything" to achieve its 2% inflation target, he said in a January interview. Look for a big opening pop in the Nikkei, and a big opening drop in the yen.
Comments (11)
  • Inflation is not the answer to a highly indebted country that is facing a negative savings rate and a dramatic reduction in JGB purchases by traditional buyers. Demographics are another issue. The central bank buying is a temporary solution but it will destroy the currency and confidence. Higher inflation equals higher interest rates and this automatically means massive interest costs and no way to pay.
    24 Feb 2013, 02:41 PM Reply Like
  • Abe is being lauded as a hero. Why is it heroic to attempt to create inflation when you have bond yields of less than 1%? Who does inflation hurt the most? Bondholders, fixed Income investors, retirees, and consumers should not be happy. I guess that basically covers the entire population of Japan. When did inflation become a stated policy objective rather than negative side effect of central bank activity? At some point when bonds become weak, this devaluation will become disorderly and we could easily see the yen move to 200, 300, or even 1000 to the USD. We are seeing history unfold before our eyes. Japanese citizens should be buying assets outside Japan. No wait.........they already are.
    24 Feb 2013, 02:45 PM Reply Like
  • Well if they are buying USD they are going from the frying pan into the fire. The good news is their pension plan recently upped their gold holding to .00000008%.
    24 Feb 2013, 02:50 PM Reply Like
  • USDJPY is going to 95. Load onto the trade on weakness.
    24 Feb 2013, 03:37 PM Reply Like
  • Get inflation by destroying productivity if that's what you want. So dumb but "getting inflation" is what you need to get in a debt based money system. No different that Madoff saying.. "get me more money into my ponzi!"

     

    Yen and Pound blow, then the Euro, then the US dollar last. RMB will be the biggest winner of all is my guess.
    24 Feb 2013, 03:46 PM Reply Like
  • At least until their own debt bubble bursts....we shouldn't forget that they're the ones who started this game.
    24 Feb 2013, 03:53 PM Reply Like
  • It is all good. Only the 2% target seems a bit low. Why not 15%? That would be a lot better. Japan is really screwed. They are working on totally destorying their economy.
    24 Feb 2013, 06:43 PM Reply Like
  • I don't think of the posters above this comment know anything about economics, or Japan.

     

    --Chris Schons
    24 Feb 2013, 07:41 PM Reply Like
  • I know two of them do. This will be fun/interesting to watch along with euro elections. I guess we wall will be making "bets" on who we think this will pan out 4 to 5 months from now.
    24 Feb 2013, 11:09 PM Reply Like
  • Better if those bets were public so we can see 1) who really believes in their position and 2) who won.

     

    Disclaimer: short Yen. Also, had a great day of skiing in japan and thank you to the news for making dinner cheaper.
    25 Feb 2013, 05:03 AM Reply Like
  • The Japanese should build a stimulus city in the middle of nowhere, paid for by newly printed money, and name it "Keynes".
    25 Feb 2013, 02:29 PM Reply Like
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