Bank of Japan & the Budget Deficit

[Dogen Z]

Kecchi!

Why!? Why did the Bank of Japan do a 10 trillion yen "quantitative easing 'in the broad sense' " when it could have just as easily bought the same amount in outstanding Japanese Government Bonds? Could someone explain, please?

By buying JGB, it could have accomplished 3 things at once: monetize (reduce) some of the huge debt, inject some inflation into the economy, and weaken the yen. But that did not happen. What is BOJ afraid of? Why so timid? Does the word "kecchi" mean something to Gov. Shirakawa? 白川のけっち！

 

[Astroboy]

Kecchi!
Why!? Why did the Bank of Japan do a 10 trillion yen "quantitative easing 'in the broad sense' " when it could have just as easily bought the same amount in outstanding Japanese Government Bonds? Could someone explain, please?
By buying JGB, it could have accomplished 3 things at once: monetize some of the huge debt, inject some inflation into the economy, and weaken the yen. But that did not happen. What is BOJ afraid of? Why so tid? Does the work "kecchi" mean something to Gov. Shirakawa? 窶昶?卍静ｬ窶堙娯?堋ｯ窶堙≫?堋ｿﾂ！

IF BOJ makes QE by purchasing JGB, BOJ may lead J-government to become disorganized.
Probably BOJ does not want to become Bank of England.... In short, BOJ (still) aims to let J-government to maintain its fiscal discipline.

As far as I know, BOJ is traumatized as it was told that BOJ-led QE in late 1980 virtually caused Japan's bubble economy.

 

[Dogen Z]

IF BOJ makes QE by purchasing JGB, BOJ may lead J-government to become disorganized.
Probably BOJ does not want to become Bank of England.... In short, BOJ (still) aims to let J-government to maintain its fiscal discipline.
As far as I know, BOJ is traumatized as it was told that BOJ-led QE in late 1980 virtually caused Japan's bubble economy.

I think the BOJ must realize that it's part of the government, like it or not. If it doesn't try to help when it can, it will be blamed for even more than causing the bubble era.

And the situation is different now. BOJ doesn't need to issue "window instructions" forcing banks to loan money under any circumstance like it did during that time.

If the government defaults on its debt, held almost entirely by Japanese financial institutions, the financial system will be once again in jeopardy. So the problem should be fixed now when there is time and BOJ must help. 窶愿ｺ窶ｹﾃ｢窶堙娯?拵ﾅｽﾂｭ

 

[Astroboy]

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I think the BOJ must realize that it's part of the government, like it or not. If it doesn't try to help when it can, it will be blamed for even more than causing the bubble era.
And the situation is different now. BOJ doesn't need to issue "window instructions" forcing banks to loan money under any circumstance like it did during that time.
If the government defaults on its debt, held almost entirely by Japanese financial institutions, the financial system will be once again in jeopardy. So the problem should be fixed now when there is time and BOJ must help. 窶愿ｺ窶ｹﾃ｢窶堙娯?拵ﾅｽﾂｭ

Before blaming BOJ, you must realize what happened after US FBR-led QE as well as Japan's BOJ-led QE during Koizumi era.

1. US FRB-led QE is causing USD-carry trade, and cheap money does not go to small-to-mid-sized companies, being desparate for cash-flow, but offering merits to financial companies in Wallstreet.

2. Japan's BOJ-led QE during Koizumi ear caused JPY-carry trade, which offered merits to financial companies in the world.

In short, cheap money does not stay in the countries where better yields are not expected. Thus, instead of QE, Japanese government should increase more government expenditure to narrow Demand Gap in Japan. US-government should do the same.

 

[Dogen Z]

The BOJ and the Fed make easy targets because they are powerful but independent. However, the Fed may lose some important powers in the next few months. The U.S. Congress is debating stripping the Fed of its power to oversee banks because the Fed failed to oversee banks properly in events leading to the financial crisis.

 

[Astroboy]

The BOJ and the Fed make easy targets because they are powerful but independent. However, the Fed may lose some important powers in the next few months. The U.S. Congress is debating stripping the Fed of its power to oversee banks because the Fed failed to oversee banks properly in events leading to the financial crisis.

Big difference between BOJ and FED is ownership.
BOJ is owned by J-government, but FED is owned by Rothschild and Rockefeller. Because of the ownership, objective of FED is not the same as BOJ, I think.

 

[Pachipro]

Dogen Z you really need to educate yourself on the Federal Reserve System as well as the Bank of Japan and the Bank of England before you make statements which you know hardly anything about.

First, see this video on the Federal Reserve, then come back and tell us that they are legitimate when our own constitution strictly says that only the congress shall have the power to coin money. They usurped the constitution in 1913 and they have since lent money to the US government, at interest, for which the US people get to pay with their Federal Income Tax on their W2's. Also look at the video "The Birth of the US Federal Reserve Bank" if you dare. I know it's over an hour long, but if you are serious about what you write and stand for you will view it in its entirety.

A little further research will show that the Bank of England was started by one Mayer Rothschild when he spread a rumor that England had lost a major battle with Napoleon. This caused people to sell their shares on the English exchange which he immediately bought up, for pennies on the dollar if you will, and started the Bank of England for which he loaned money to England at interest as he then owned everything in England.

One of Rothschild's famous quotes is "Give me control of a nations currency and I care not who makes her laws."

This has gone on for many, many years and continues today in the US with the FED and the major banks and investment houses on Wall Street as well as on Fleet Street.

Astroboy, if the truth be told, the BOJ is now controlled by the same families that control the BOE and the FED. This occurred during the Koizumi administration when the Postal Savings system was transferred from a private institution to a public institution a few years ago and thus gave the money (savings) of the Japanese people over to the international banking elitists of the Rockefellers and Rothschilds et al.

The BOJ is no more controlled by the J-government than the BOE, the ECB (European Central Bank) or the FRB is controlled by their respective governments. They are now all controlled by the international elitists and their banking empires. It's high time the Japanese people wake up to this fact as well as the people of Europe, the US, and England, but I fear it is too late. The people have been asleep and drugged for too long now and will suffer the consequences with "Cap and Trade", and the results of the "Hoaxenhagen" (Copenhagen) global warming meetings.

Any country that signs on to the hoax of global warming gives their sovereign power over to the globalists and the one world government that is in the making. Sadly, it seems Japan has licked the boots of Rockefeller and Rothschild and their ilk and does whatever they are told as was witnessed in the Koizumi era. Koizumi sold out Japan.

 

[Dogen Z]

Well, Pachi, I'm sorry but I don't have time for your silly conjectures. You take minor points and distort them all out realtiy just to fit your outlandish ideas about the world. On top of that, your understanding of economics seems very shallow. So excuse me if I don't follow your program.

BTW, ownership is one thing, but control is something else. The owners had to cede control before the Fed System could work. In exchange, the owners got a monopoly.

 

[Astroboy]

Astroboy, if the truth be told, the BOJ is now controlled by the same families that control the BOE and the FED. This occurred during the Koizumi administration when the Postal Savings system was transferred from a private institution to a public institution a few years ago and thus gave the money (savings) of the Japanese people over to the international banking elitists of the Rockefellers and Rothschilds et al.

The BOJ is no more controlled by the J-government than the BOE, the ECB (European Central Bank) or the FRB is controlled by their respective governments. They are now all controlled by the international elitists and their banking empires. It's high time the Japanese people wake up to this fact as well as the people of Europe, the US, and England, but I fear it is too late. The people have been asleep and drugged for too long now and will suffer the consequences with "Cap and Trade", and the results of the "Hoaxenhagen" (Copenhagen) global warming meetings.

Any country that signs on to the hoax of global warming gives their sovereign power over to the globalists and the one world government that is in the making. Sadly, it seems Japan has licked the boots of Rockefeller and Rothschild and their ilk and does whatever they are told as was witnessed in the Koizumi era. Koizumi sold out Japan.

No problem. Bank of Japan is a consolidated subsidiary of J-government. Shareholding is totally regulated by Law. In other words, IF BOJ purchase J-government's bonds, J-government needs to pay interest to BOJ, but as it's a consolidated subsidiary of J-government, interest returns to J-government. Thus, ultimately BOJ can purchase J-bonds for QE.

In the meanwhile, privatalization of Japan Post has just been postponed. No need to worry.

 

[Pachipro]

The BOJ and the Fed make easy targets because they are powerful but independent. However, the Fed may lose some important powers in the next few months. The U.S. Congress is debating stripping the Fed of its power to oversee banks because the Fed failed to oversee banks properly in events leading to the financial crisis.

Powerful, yes, but how are they independent? Is is because they are owned by some of the most influential families and banks in the world and completely free of government control?

Stripping the FED of it's powers? Not on your life. The FED, being an independent power owns and controls the government, not vice-versa. Congressman Ron Paul's initiative, while interesting and one that should be passed will be buried as all other calls for audits of the FED in the past have been dismissed and buried.

"Failed to oversee the banking crisis"? They caused it! Surely you jest. Just look who runs the FED today and in the past and you will see that they are run by former execs from Goldman Sachs and Wall St bankers.

Well, Pachi, I'm sorry but I don't have time for your silly conjectures. You take minor points and distort them all out realtiy just to fit your outlandish ideas about the world.

BTW, ownership is one thing, but control is something else. The owners had to cede control before the Fed System could work. In exchange, the owners got a monopoly.

Conjectures? You think I am theorizing or making this stuff up? It's all a fact with all the evidence one needs to back it up if one takes the time to look it up. Sadly, many people are afraid of the truth and I can safely say you did not look at the video. Please provide me with evidence proving that I am wrong and making conjectures as, unlike you, I will look at it and study it and then provide an opinion before saying you are wrong as you may be right with your evidence. I have an open mind.

And, who are the owners? Please tell me. Of course they have a monopoly, they planned it that way and put in their charter that no congressman or senator of the US shall serve on their board. Why?

Also, my view of the world is based on fact, not conjecture or theory. I deal in hard evidence and facts only which is why I always post links to hard evidence and not theory or conjecture all verifiable by actual documents.

....but FED is owned by Rothschild and Rockefeller. Because of the ownership, objective of FED is not the same as BOJ, I think.

You are so correct Astroboy and I post this link to prove you are correct on who actually owns, has owned, and who continues to own the FED and control the US government to this very day. I know you will look at whereas others will not, but will say I am making conjectures without providing evidence to the contrary. I ask, is this conjecture of fact?

Here is the link to who actually owns the Federal Reserve System and it is not the US Government. complete with charts and names of the owners and corporations. If this doesn't open any eyes nothing will. Is this conjecture or fact?

Here is a dialogue from a US congressman from 1975: Source: The Hidden History of Money and New Wold Order Usury Secrets: Revealed! by Alexander James

Representative Wright Patman, former Chairman of a House Banking Committee said: "The Federal Reserve Banks create money out of thin air to buy Government bonds... The Federal Reserve Bank is a total money making machine." [They have monopoly on counterfeiting money]

Former Federal Reserve Bank Chairman Eccles was asked by Patman, "Mr. Eccles, how did you get the money to buy these two billion dollars of government bonds." Mr. Eccles replied, "We create it." "Out of what?" Patman asked. "Out of the right to issue credit money", i.e. out of nothing. This right to create money out of thin air was given to the Private Federal Reserve Bank by a fraudulent act of Congress in 1913 known as the Federal Reserve Act, same fraud has been happening since the 17th century with the Private Bank of England and other banks. The FED issues Federal Reserve cheques redeemable as Federal Reserve Notes only with no liability to itself. The Fed is not subject to taxes and in-depth audits. The local banks create credit money as well but not currency notes. Read later about how most central banks are
privately owned/controlled outright or de-facto.

Congressman Wright Patman (May 5, 1975): "In its sixty-year history, the Federal Reserve System has never been subjected to a complete, independent audit, and it is the only important agency that refuses to consent to an audit by the Congressional agency, the General Accounting Office."

Is this just conjecture or fact? You be the judge.

I still maintain that the BOJ is controlled by the US, aka the FED, and international bankers like the IMF and World Bank and International Bank of Settlements (IBS). Thus the recent visits to Japan of FED representatives and Kissinger among others. They are forcing Japan to appreciate their currency thus the recent weakening of the yen and the appreciating of the dollar. However, all of it is smoke and mirrors.

 

[Astroboy]

Also, my view of the world is based on fact, not conjecture or theory. I deal in hard evidence and facts only which is why I always post links to hard evidence and not theory or conjecture all verifiable by actual documents.

Pachipro ...
I fully agree with you. I always try to do the same.

 

[Dogen Z]

Well, don't let me spoil your fun, but psuedo scholastic attempts using references from questionable secondary sources or out of context to reach predetermined conclusions are not very impressive. Something more balanced and less strident would be more interesting.

BTW, I think auditing the Fed would be a good idea. It shouldn't be treated as though it was the Vatican. I wonder why Bernanke is resistant to the idea. However, just because he is doesn't prove anyone's point.

AND, this is NOT a thread about the Fed. Don't hijack it.

 

[Astroboy]

I still maintain that the BOJ is controlled by the US, aka the FED, and international bankers like the IMF and World Bank and International Bank of Settlements (IBS). Thus the recent visits to Japan of FED representatives and Kissinger among others. They are forcing Japan to appreciate their currency thus the recent weakening of the yen and the appreciating of the dollar. However, all of it is smoke and mirrors.

I don't deny your post. It is absolutely true that Japan's banking system & BOJ are influenced by FED, IMF, IBS, etc., as Japan needs to play in the global markets and benefit from those Anglo-American-led financial system.

But All is Until recently. Time has changed as it is not the time of G7 but G20.

 

[Pachipro]

Well, don't let me spoil your fun, but psuedo scholastic attempts using references from questionable secondary sources or out of context to reach predetermined conclusions are not very impressive. Something more balanced and less strident would be more interesting.

What more do you want? What would be more balanced in your opinion? Of course it's not very impressive to someone who refuses to follow the links and do the research, but that would require much reading and an analytical, open mind. It makes me wonder how people can be so closed minded, but that's what they are depending on and the reason why we have the government we have. As the old saying goes, "You can lead a horse to water, but you can't make it drink".

Also, I am not hijacking this thread. The thread is about the Centralized Bank of Japan which has a lot in common with the FED and, as Astroboy mentioned, Japan may just have a bit more control over their own bank, but I still fear they do not based on recent meetings, arm twisting by the US and fluctuations in the yen. As much as one would like to believe, it is not all based on a true free market. As long as the US$ remains the reserve currency of the world, the FRB will be in charge of all industrialized countries with the exception of the the UK.

I leave you with these quotes:

"I sincerely believe that banking institutions having the issuing power of money are more dangerous to liberty than standing armies." – Thomas Jefferson

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government of free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." – President Woodrow Wilson, 1919 (He signed the Federal Reserve into power in 1913.)

"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered." — Thomas Jefferson, Founding Father, Third President of the United States, and the principal author of the US Declaration of Independence"

 

[Dogen Z]

Don't hijack this thread!

I don't know how much clearer I can be. This thread is NOT about the Fed.

If you want to discuss the Fed, please create your own thread.

THIS IS WHAT THIS THREAD IS ABOUT: