As said countless times before on this site, QE is permanent. There is no way that central banks like the Fed, Bank of England and others can reverse their expansionary policies or engineer a neat “exit” without tipping their economies into an all-mighty deflationary collapse. The money printing will become more brazen, and the authorities more daring in their attempts to fire up an inflationary recovery.
The Bank of Japan is the latest actor to pledge itself to aggressive money printing: the yen falling yesterday as news broke that the BoJ is planning more quantitative and qualitative easing. The Bank is pursuing an inflation target of 2%, and as dailyfx.com reports, it “will now use ‘monetary base control’ in pursuing quantitative monetary easing which involves carrying out market operations that will expand the monetary base by 60-70 trillion Yen per year.”
Read the complete article at GoldMoney here.
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