Japan Is Getting NIRP’d

Asian Development Bank of the Philippines President Haruhiko Kuroda reacts during a press conference at the Malacanang palace Thursday, March 1, 2012 in Manila, Philippines. Kuroda commended the adminitration of President Benigno Aquino III for its focus on government reforms and announced the holding of the 45th annual meeting of the Board of Governors of ADB in the country. (AP Photo/Pat Roque)

“At this meeting, we judged that it was suitable to look more closely at the extent to which the effects of our policies are sinking in,” —Mr. Kuroda 

The Nikkei Stock Average closed down 3.6% after rising in the morning on anticipation of further BOJ action. Japan decided not to NIRP itself today because they want to see how the most recent NIRP-ing works out. Don’t worry though, Kuroda said there is more NIRP powder in the NIRP bazooka.

Meanwhile prior to the rate decision last night, Japan released more heinous economic numbers and is nowhere near their inflation targets. Bottom line. NIRP-ing isnt working.

Japan practically owns all of their own stock market and most of their bonds. Who’s left to buy?

Take notes kids, history books will love this story in five years.  I’m sure it’s fine.


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