Cultish Fervor - Japan Is In QE10 And Is Going Nowhere | Zero Hedge

Cultish Fervor - Japan Is In QE10 And Is Going Nowhere | Zero Hedge



Submitted by Jeffrey Snider via Alhambra Investment Partners,



When the Bank of Japan announced on October 31, 2014, that it would increase the scale of QQE to ¥80 trillion annually, it noted the usual surfeit words that have clearly been passed around to everyone within network connectivity of the central axis of orthodox economics. You can honestly close your eyes and have someone read aloud the text and you would be very hard pressed, omitting specific references, to determine which central bank or nation it came from. All the buzzwords and phrases were there, including: “continued to recover moderately”, “above its potential”, “temporary weakness” that had “started to wane”, and the “decline in crude oil prices will have positive effects on economic activity.”



From all that you might ask yourself why would the BoJ need more QQE when its own argument put forth suggests exactly the opposite. Such contradictions are scarcely the exceptions, as the entire idea is itself at odds with itself. Apparently the only true economic danger in Japan, as elsewhere, is not the actual economy (which is always terrific or just about to be) but the evil, dreaded “deflationary mindsight.” So the BoJ upped its ante in case Japanese people start thinking unhappily about what QQE might not be able to do with, apparently, no real basis for them to actually think that way. Thus is the treasure of monetarism as it applies “forward guidance” and the Krugman version of “credibly promise to be irresponsible” as if nobody should notice anything but the intended happy ending. It really is the monetary equivalent of “the beatings will continue until morale improves.”



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