The Bank of Japan just added 10 trillion Yen last week

Darthvader

The Bank of Japan just added 10 trillion Yen last week r.

Much like the Bank of England added £50billion the week before to the worlds currency supply.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/20_Fitzwilson_-_Pulling_Back_the_Curtain_on_the_Financial_System.html

Bottom line here, there is an all out assault on the part of global central banks to destroy their currencies, in an effort to allow their respective governments to continue the practice of running humongous deficits. In fact, the developed world’s central bankers are faced with the choice of either massively monetizing Sovereign debt or to sit back and watch a deflationary depression crush global growth. Since they have so blatantly chosen to ignite inflation, it would be wise to own the correct hedges, gold and other strategic assets, against your burning paper currencies.”

AndyGuil

Japan also has an issue with a lot of people buying Yen on the market which drives its value up and makes Japan less competitive. They frequently ease this by printing money which devalues the currency.

mr_fishbulb

As I understood it, the demand for Yen has been high because of the carry trade (low interest rates), but since other nations have significantly dropped their base rates I don't know why the Yen has continued to rise.

It's annoying as I have some of my portfolio in Japanese stocks and their companies are suffering exports because of the strong Yen.

Generali

From a rather more sensible news website:

http://online.wsj.com/article/SB10001424052970204062704577223253943665294.html?mod=googlenews_wsj

'Tis true. The BoJ has 'printed' JPY10,000,000,000,000 ( = USD129,000,000,000) which is being used to buy Government bonds. I have my doubts as to whether this can all end well. As I have maintained, the problem with the current policies isn't getting into them so much as getting out of them again and inflation has a rather nasty habit of getting out of control very quickly.

It's not just like you can necessarily undo QE. If you can't find buyers to buy the bonds back then the cash stays out there in the economy, bidding up prices.

Jezzer1969

AndyGuil wrote: »

Japan also has an issue with a lot of people buying Yen on the market which drives its value up and makes Japan less competitive. They frequently ease this by printing money which devalues the currency.

So what is the USA and UK excuse? In fact every currency around the world is getting abused by the supply being expanding by adding billions of units from thin air.

Darthvader

http://www.moneyweek.com/news-and-charts/economics/global/why-we-can-expect-more-money-printing-from-central-banks-21400

Our financial system is nothing short of absurd.
We have a global marketplace, where millions of people trade countless different products, both real and financial. As a British investor, you can buy exposure to virtually any economy in the world, and any asset class you like.
An almost infinite number of variables are acting on this system at any given time. Everything from the weather in Bangkok to the mood swings of European finance ministers has an effect on it.

And yet, more than anything else, the price movements across this whole elegant network are dependent on one thing: the mutterings of a small group of men in a room in Washington DC.
So much for free markets…
The Fed and Spain spook the market

Wondering why the wind has dropped out of the markets’ sails in recent days? It’s mainly down to the Federal Reserve.
On Tuesday evening, minutes from the Fed’s latest meeting on monetary policy (the equivalent of our own Bank of England minutes) came out. In short, the Fed looks less likely to print more money than investors had expected. On the news, the US dollar shot up, gold slid, and stocks took a knock too.
Even the normally ‘dovish’ San Francisco Fed president John Williams noted that “the downside risks to the US economy have lessened”, and that “the arguments for doing another dose of monetary stimulus aren’t nearly as strong” as they were for the early bursts of quantitative easing (QE).
Obviously, the news that the real economy might be improving panicked investors. If that’s true, then they won’t get any more free money to punt in stock markets.
Things weren’t helped yesterday, when an auction of Spanish government debt also had trouble getting away. This was doubly painful, because the Spanish government has committed to some pretty severe austerity measures. Whether you believe the country can do it or not, it’s at least making an effort.
What’s really worrying is that, as Justin Knight of UBS tells the FT, “the international investors who have left the Spanish bond market will probably not come back”. That suggests that the poor appetite for the bonds means that Spanish banks – the main buyers these days – might be “running out of LTRO money and therefore stop buying as well”, which would be “serious news for the market”.
Are central banks really going to pull the plug?

Generali

Reported as spam.

Darthvader

Generali wrote: »

Reported as spam.

Yeah thats right any article that doesnt agree with your way of thinking, just report as spam and dismiss ASAP.

The fact of the matter is Generali the central banks are ineed flooding the world with units of fiat currency as the article says. If you like it or not you are foolish to just dismiss it.

I wonder what would be left if the property bears always report as spam every article posted by the property bulls? It would be a pretty one sided debate, wheres the fun in that?

Generali

Darthvader wrote: »

Yeah thats right any article that doesnt agree with your way of thinking, just report as spam and dismiss ASAP.

The fact of the matter is Generali the central banks are ineed flooding the world with units of fiat currency as the article says. If you like it or not you are foolish to just dismiss it.

I wonder what would be left if the property bears always report as spam every article posted by the property bulls? It would be a pretty one sided debate, wheres the fun in that?

It was reported as spam because of the great big adverts that you posted as you would have discovered if you had asked.

The fact of the matter is that no system of money has ever really survived in the long term be it gold, silver, shells, chewing gum, cigarettes or chocolate.

Fiat money at the moment is the most successful form of money there has ever been as every country in the world that I am aware of uses fiat money. I am unaware of a period before 1971 where every country in the world has effectively shared a single monetary system.

Why do you think that the M4 measure of money supply in the UK is falling by 3.4% a year if the UK is being flooded with money? AFAICS there are 3 possible answers:

a) The Bank of England is lying and M4 isn't falling at all.
b) Despite the Bank of England printing money, the money supply is falling because banks won't lend.
c) Despite the Bank of England printing money, the money supply is falling because people won't borrow.

If you think a is the answer then good luck to you. If you think b, c or d then I reckon we can have a decent conversation about it. My guess is that the UK (and others) are in a 'liquidity trap', that is people won't borrow or banks won't lend. Traditionally the former defines a liquidity trap but IMO it doesn't matter which way round it is.

So it's up to you really. Do you want to discuss this or stick to dogma? I'm happy either way.

Darthvader

Generali wrote: »

It was reported as spam because of the great big adverts that you posted as you would have discovered if you had asked.

The fact of the matter is that no system of money has ever really survived in the long term be it gold, silver, shells, chewing gum, cigarettes or chocolate.

Fiat money at the moment is the most successful form of money there has ever been as every country in the world that I am aware of uses fiat money. I am unaware of a period before 1971 where every country in the world has effectively shared a single monetary system.

Why do you think that the M4 measure of money supply in the UK is falling by 3.4% a year if the UK is being flooded with money? AFAICS there are 3 possible answers:

a) The Bank of England is lying and M4 isn't falling at all.
b) Despite the Bank of England printing money, the money supply is falling because banks won't lend.
c) Despite the Bank of England printing money, the money supply is falling because people won't borrow.

If you think a is the answer then good luck to you. If you think b, c or d then I reckon we can have a decent conversation about it. My guess is that the UK (and others) are in a 'liquidity trap', that is people won't borrow or banks won't lend. Traditionally the former defines a liquidity trap but IMO it doesn't matter which way round it is.

So it's up to you really. Do you want to discuss this or stick to dogma? I'm happy either way.

Sorry for the adverts they werent intended.

I would say that only 2 things are at all times money in and of themselves. Yes only gold and silver.

Everything else that has been used as a medium of exchange is just currency.

I think the answer to your question is D) There is a global financial crisis worse than anytime in history and we have a debt collapse happening all around the world. Everything that is being tried is just making the crisis worse.

Outstanding revolving credit is collapsing all around the world. All they can do is keep expanding the base money supply but try and do it stealthily and make people think its only for a short time.

60% of the units of fiat currency in the world are US$ and I would would bet you any money they will not stop abusing the currency supply.

purch

60% of the units of fiat currency in the world are US$

Where did you dream up that number ??

How are you defining a unit ?

One Dollar equals 1 Turkish Lira ??

You cannot expect anyone to take your posts seriously if you insert unsubstantiated rubbish like that.