Click here to get this article in PDF
Bloomberg/Min Jeong Lee and Toru Fujioka/4-7-2022
“Such wide-ranging goals have led the Japanese central bank to amass a whopping 80% of the country’s ETFs—equivalent to about 7% of its $6 trillion stock market—in less than a decade. That’s far further than any other central bank in the world has gone in trying to prime its economy via equities purchases. The Bank of Japan has also outpaced peers with its $3.7 trillion in net bond purchases.”
USAGOLD note: The problem, according to Bloomberg, is liquidating those assets without cratering the target market – an asset trap of sorts that makes the central bank a semi-permanent to permanent holder of the securities in question. Why wouldn’t the Fed, some might ask, find itself in a similar situation with U.S. Treasuries and mortgage-backed securities? Japan in this regard is indeed a cautionary tale ……
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.