Japan and devaluation of yen

Vitaliy_Kiselev

TOKYO, April 4 (Reuters) - The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.

New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014, a dose of shock therapy officials hope will end two decades of stagnation.

I think they are too careful, why only such small amount?

Vitaliy_Kiselev

Btw it is good to understand for middle class and small businesses that all such things won't help them, quite in reverse, they'll hurt them.

None of the guys plan to hike actual wages, no. And they do not plan to increase production of actual things. They want to give money to the people who have plenty of them already.

And this people will take more and more of real and service sectors. More closeouts, more mergers. More optimizations.

kazuo

This seems to be the fiscal trend in most if not all countries trying to work out socioeconomic problems. The govt invariably refuses to tax the rich more because then you would drive them out together with the investments they bring into the country.

Whack the middle class, make them pay as much taxes as the rich, but the returns for the rich will be disproportionately higher. In situations like this, it's better off being poor, ironically, since those in the lower strata of society still qualify for greater portions of govt aid.

It's the middle class everywhere that is boxed in and crying out silently for help

stoney

It's never better off being poor. Crazy liquidity is WMD.

stoney

Howdy, Stranger!

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