Source: GCR RealTimeNews
Total Fiscal Insanity! Japan Govt & Central Bank Goes “Full Speed Ahead” into Bond and Currency Doom Vortex
It’s almost as if Japan’s “leaders” want a total collapse of their currency, credit markets and real economy.
Maybe they’re tired of waiting for Iraq to get their act together and bring on Our RV/GCR? [Just kidding, we’re not waiting for Iraq]
Yet, a total collapse of Japan’s financial infrastructure is likely to be the first domino to fall, thus creating a cascading collapse in the UK, Germany, China, Australia and finally the USA. Then, hello Asset-Backed Currency system.
wasting spending over $50 billion in US Dollar reserves to save the Yen from further collapse (which failed miserably), the Japanese Government today announced a fresh $197 billion yen equivalent of stimulus spending to hold back inflation and keep the 10-Year Japanese Treasury Yield below its targeted 2.5% (Yield Curve Control, or YCC).
So Japan is pumping trillions of new Yen (created out of thin air) into the economy to control the inflation that was actually created by previously pumping more yen into its economy, while also creating much more government debt, which increases the very bond yields they’re trying to keep low, which also weakens the Yen even further via currency debasement.
What could go wrong? … Just about everything from hyperinflation, currency collapse and government debt default.
“ … the Japanese government on Friday unveiled 29.1 trillion yen ($197BN) in fresh spending to – drumroll – ease the impact on consumers of something Japan has not seen for decades, i,e., soaring inflation, and something it has seen (but not to this extent) a collapsing yen.”
“ … in addition to the $200BN in government funded stimulus is a $490BN total check – which is expected to bring down Japan’s consumer inflation rate by more than 1.2 percentage points, which of course will never happen; instead what will happen is that the massive stimulus – which would have been equivalent to almost $1 trillion in the US – will only push prices higher, and since the BOJ will have to monetize it all, the BOJ is effectively printing money to offset the inflationary impact of printing money!”
“ [bottom line] … the USDJPY is going right back to 150, where the BOJ will have to intervene again and again… until it runs out of US reserves at which point it is game over and hyperinflation – in the form of currency collapse – finally arrives.”
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