BOJ

In today’s post Grant Williams looks at the recent actions of the Bank of Japan and their attempt to break free of the deflationary spiral they have been on for more than 20 years. Back in April of 2013 Abenomics was born and Japan began boosting their stock market while trashing the Yen. Now they have “doubled-down” and are planning a TARP style bailout to the tune of about $720 billion. This is only slightly less than TARP’s $787 billion except that the Japanese economy is much smaller than the U.S. economy. So it is really equivalent to the U.S. blowing about $3 Trillion a year for the foreseeable future! And Japan’s debt to GDP is already about 250% compared to the U.S.’s 110%, so they don’t have any wiggle room left.