Bank Of Japan - Jawboning Again
We previously mentioned the BOJ's jawboning in a Bubble and PPI post.
The BOJ's recent announcement that they will slowly sop up excess liquidity seems to play right along with the Central Banks (FED, BOJ, BOE, PBOC & ECB) grand scheme on things.
We recognized the BOJ's flood of money in 35 Trillion Reasons Why. Now, even Jim Jubak at MSN has picked up on it.
"Calculations by The Financial Times put the extra cash at something like six times beyond what the bank needed to put into the Japanese financial markets to get interest rates to fall to 0%."
"Some of the cash was borrowed in Japan by overseas investors who used the free money to buy U.S. Treasurys, gold and mortgage-backed securities, among other assets."
Since The BOJ's March 9th announcement yields on 10-year U.S. Treasury notes have been on the rise and the price of gold and other commodities have gone down.
"Speculators have used money borrowed at near 0% interest in the Japanese market to make bets on everything from gold to silver to copper.. some speculators have started pulling their money back so they won't be the last one out the door."
As we have maintained in these pages, get ready for interest rates far beyond what most expect.
The BOJ's recent announcement that they will slowly sop up excess liquidity seems to play right along with the Central Banks (FED, BOJ, BOE, PBOC & ECB) grand scheme on things.
We recognized the BOJ's flood of money in 35 Trillion Reasons Why. Now, even Jim Jubak at MSN has picked up on it.
"Calculations by The Financial Times put the extra cash at something like six times beyond what the bank needed to put into the Japanese financial markets to get interest rates to fall to 0%."
"Some of the cash was borrowed in Japan by overseas investors who used the free money to buy U.S. Treasurys, gold and mortgage-backed securities, among other assets."
Since The BOJ's March 9th announcement yields on 10-year U.S. Treasury notes have been on the rise and the price of gold and other commodities have gone down.
"Speculators have used money borrowed at near 0% interest in the Japanese market to make bets on everything from gold to silver to copper.. some speculators have started pulling their money back so they won't be the last one out the door."
As we have maintained in these pages, get ready for interest rates far beyond what most expect.
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