Top Extension


So, the day after the U.S. Fed announced it would end QE, Japan extended it. How’d they do that?

The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging

Tyler Durden on 10/31/2014

… The lunatics at the BOJ flat-out jumped the monetary shark. … Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year – a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%. …

(So) Japan’s state pension fund (the GPIF) intends to dump massive amounts of Japanese government bonds (JCB’s). This will enable it to reduce its government bond holding – built up over decades – from about 60% to only 35% of its portfolio. … The JCBs are intended to tumble right into the maws of the BOJ’s endless bid. …

Having slashed its historic holdings of JCBs, the GPIF will now double it allocation to equities, raising its investment in domestic and international stocks to 24% each.

Stated differently, 50% of GPIF’s $1.8 trillion portfolio will flow into world stock markets.  On top of that—the BOJ will pile on too—-tripling its annual purchase of ETFs and other equity securities. …

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About icliks

Biding my time in central ms ... yours too, if ur reading this.
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