Sunday, July 10, 2016

The Decline & Fall Of The Biggest Bond Market 
In The World Has Only One Inevitable Ending
It's About The Failure Of Central Banking Globally
CLSA: "Japan, as well as America, is also a candidate for monetization of infrastructure stimulus or for what Bernanke has called a 'money-financed fiscal program', or what has been called in other quarters 'overt monetary financing'. This is because Bank of Japan governor Haruhiko Kuroda is now looking for a new alternative form of monetary easing, given he has probably reached the practical limits of responsible JGB buying, as already discussed, while his initial move to impose negative rates in January led to the opposite market reaction than expected while also proving politically very unpopular. This probably explains why Kamikaze Kuroda has not expanded the negative rate policy further since January even though inflation and inflation expectations have moved in the opposite direction of what he has been targeting .. Monetization of infrastructure stimulus may be the option." .. Zero Hedge: "Central bank policies are not working and, indeed, are having the opposite effect of what is intended. Instead they remain obsessed with policy frameworks influenced by inflation targeting and monitoring inflation expectations. It is, therefore, critical for investors to focus on what could be the next version of the monetary laboratory experiment with the obvious catalyst for that turning point market realization that the Federal Reserve is not going to be able to normalize monetary policy."
LINK HERE to the article

No comments: