The Bank of England (BoE) in a report made this year 2015, stated that aggregate demand for bank notes is increasing which is the same for increasing demand for the Bank of Japan (BoJ) bank notes despite QE (Quantitative Easing). This is contrary to what economic forecasters had predicted about meeting demands for cash both in Britain and in Japan. The Bank of Japan is based on the same central banking model as the Bank of England.
Recently, as reported by FT, “the Bank of Japan will become the first big central bank to publish individual economic forecasts by its board members as its governor, Haruhiko Kuroda, revealed a shake-up of communications policy.” But this isn’t entirely correct and it isn’t such a “shake up” at all. These two central banks work closely together and have for a very long time, so these ideas that are alleged to “shake up” the way the BoJ works are coming out of the Bank of England. The Bank of England is already preparing and has been delivering such reports for a very long time.
In fact, the Bank of Japan’s governor, Haruhiko Kuroda was educated at Oxford. And that’s why Shinzo Abe brought Haruhiko Kuroda into the Bank of Japan which was expected, demonstrating the Anglo-American influence of central banking on Japan related to fiscal and economic planning (probably military planning as well). It was stated in an article in the Guardian, “that QE was effectively born in Japan,” a country plagued in recent history by deflation and rolling recession. QE was not “born in Japan.” It came out of central bank planning with the Bank of England. The phrase “quantitative easing” was coined to describe Japan’s efforts to kickstart growth and get prices rising again, starting in 2001 and lasting five years. The QE program has failed miserably. So much for central bank planning. The only benefactors are Japan’s defense related corporations.
Without QE being based on production and productive capacity of all of Japan’s roughly 127 million people, the BoJ under Kuroda started QE and was worth $1.4tn (£923bn) that “doubled the country’s money supply – in a drastic bid to restore the economy to health and banish the deflation that has dogged the country for more than a decade.” That came out to roughly US$15 billion a month during QE. My guess is that QE cash went into Japan’s military-related manufacturing corporations. The real benefactors. Inflation is a much better way and more palatable to the public to pay for military adventures. No wonder in the interview posted below, Kuroda says that “manufacturing is up in Japan.” Ever wonder why inflation is the central bank’s mantra? That’s because inflation is not a rise in prices. Inflation is theft. In Japan it is masking military buildup. And this is why Abe brought in Kuroda so he could handle Japan’s military buildup masking it as “inflation.” The Japanese Defense Ministry asked for a 3.5 percent spending increase to 5.05 trillion yen ($48.7 billion) for the fiscal year that began in April, 2014. Japan already has the world’s tenth largest military.
Haruhiko Kuroda, governor of Bank of Japan – View from ADB 2015