“Overnight And Overseas – The Bank of Japan has blown the lid off markets. Here’s what our pal, Peter Boockvar, over at the Lindsey Group wrote in his note this morning:
Not willing to admit defeat on his growth and inflation goals and apparently not happy with lower oil prices, Kuroda and 4 other members of the BoJ (4 dissented) decided to go even further with the same policy that was providing him results that he wasn’t happy with. So, instead of expanding the monetary base by 60-70T yen, the BoJ will now do so by 80T yen (an increase of about $90b-$180b). Kuroda in his press conference gave his own Mario Draghi call to arms by saying “we will do whatever it takes to achieve our price target.” OPEC (especially Venezuela) and the US oil shale industry should be high fiving as Kuroda said “on the price front, somewhat weak developments in demand following the consumption tax hike and a substantial decline in oil prices have been exerting downward pressure recently.” The BoJ will also extend the maturities of their JGB holdings (about 7-10 years from 7 years) and will also buy more REITS and ETF’s alongside the expected increase in stock purchases from the Japanese government’s pension fund. Gold is selling off in the kneejerk reaction to the strong $ and very weak yen but I say to all those living in Japan holding your life savings in yen, BUY AS MUCH GOLD AS YOU CAN NOW because it will be the only way to save yourself from the collapse of the yen.
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