The war on interest is on: Japan’s economy is not growing, and inflation is not rising despite pumping trillions of Yen into the economy. So Abe decides it’s best to push even more money into the economy. Is this not the definition of insanity; doing the same thing again and again and hoping for a new outcome. Central bankers worldwide have now embraced the inflate to infinity project; they will only stop when one nation that is too big to fail, finally fails.
Data released on Friday showed consumer prices in May fell at their sharpest pace since 2013, delivering another blow to the central bank’s efforts to goose an economy that has struggled to muster inflation for nearly three decades. Japan’s core consumer prices fell 0.4 percent in May from a year earlier; government data showed on Friday.The soggy economic data comes in the backdrop of a sustained rise in the Japanese yen, which has risen sharply against peers after skittish investors piled into assets perceived to be safe after the uncertainty following the U.K. referendum. The dollar/yen par was trading around 103 Friday morning in Asia, down from 111 at the end of May.
So far, Japan has refrained from directly intervening in the yen, which would contravene agreements with its Group of 7 partners to avoid unilateral action in the currency market, but the BOJ may do so if dollar/yen drops below 100, Capital economic’s senior Japan economist, Marcel Thieliant, told CNBC’s “The Rundown“. Full Story
And here we go again “the currency wars” continue. Japan will have to flood the system with more money, so what’s the difference between Britain using Brexit to lower the value of its currency or it being forced to lower rates to make it’s currency more competitive. Japan is patted on the shoulder for doing essentially the same thing, while the media makes it look like Britain just purchased a one-way ticket to hell. Central bankers have embraced the era of negative rates, and this is going to release a tidal wave of speculative forces; translation, speculation is eventually going to become the new craze in town.
Negative Interest Environment Game Plan
If you want freedom today, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who seek to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that are detrimental to your overall well-being. Subscribe to our free newsletter to keep abreast of the latest developments;. Mass Psychology utilised properly it can be used to spot trends in any market, and we can show how to protect yourself and benefit from these new trends. The world is changing it’s a dog eat dog world, but you do not need to descend into the pits of filth; you have the choice to distance yourself from this sub-human behaviour and empower yourself both mentally and financially; the decision lies within your palms
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