Here’s the latest from Max Keiser and Stacey Herbert on Japan being at the epicenter of easy money and Japan’s inability to control its debt collapse while remaining unable to control its markets. This has been going on according to Stacey Herbert for thirty years in Japan describing it as: “Never has BoJ [Bank of Japan] done so much for so little benefit.” Japan is a “slave country dictated by the policies of its central bank”. For the past 30 years, Japan has been the cheapest place to get money and some of this money was used in the European real estate market borrowed at zero interest rates and now negative rates. Carried trades in Yen allowed cheap property to be purchased in Europe.
Max Keiser asserts Japan is the “foundation of the global ponzi scheme” with zero interest rates and now negative. The Japanese saw the global market realities coming at them like a runaway freight train and so they went negative interest rates. When will the Japanese realize they cannot control the markets? The central bank of Japan has been buying up stocks in record amounts including 80 to 90 percent of their own bonds. None of that is backed by the realities of the market and demand for what Japan manufacturers. First, Japan shot their “four arrows of Abenomics” in 2014 and all four arrows missed their target, now Japan’s Harurhiko Kuroda announces his “three new dimensions” for the Bank of Japan: “quantity, quality and the interest rates.” Yeah right, let’s see you pull off the new “three dimensions” Mr. Kuroda. Market realities are going to come crashing down all around the front entrance to the Bank of Japan in Tokyo. Don’t let them hit you on the head on the way to the office.
Keiser Report: Hegemony, control and Russian bonds (E916)