BOJ Ready to Engage in More QE to Meet 1% Inflation Target

We would assume that the Japanese government is fully aware of the consequences to future generations.

Japan had a strong manufacturing-based economy, but they squandered their world class assets through bad debt and insolvent Kereitsu.

BOJ’s quantitative easing succeeded in stoking asset inflation, yet when it unwound its QE, deflation returned. Japan’s stock market rose up from about 2003 to 2007, and then declined after QE was unwound. Meanwhile, BOJ has been heavily monetizing its own debt.

Is Japan coming close to the end game? Perhaps they can rebuild the system after once they reach the final stage.

From the WSJ:

The Bank of Japan stands ready to take additional steps as needed to achieve its price goal, a deputy governor of the central bank said Wednesday, amid strong expectations it will act at its policy-board meeting next week.

"The bank is committed to implementing additional easing measures if deemed necessary," Kiyohiko Nishimura told business executives in a speech in Okayama, western Japan.

"We will pursue powerful easing through a virtually zero interest-rate policy and asset buying until the 1% goal comes into view," he told business leaders.

Market participants took Mr. Nishimura's comments as confirmation the bank will act at its meeting next week, which will follow close on the meeting of the U.S. Federal Reserve's Federal Open Market Committee on April 24 and 25.

"The BOJ will ease its policy even without the Fed's action. That's the market's understanding. Nishimura's comments today confirmed that," said Atsushi Ito, a senior analyst at UBS Securities in Tokyo.

http://online.wsj.com/article/SB10001424052702303513404577351253450208624.html