The Bank of Japan (BoJ) thinks that by flooding its system with money it can wish away real problems such as the threat of a nuclear catastrophe.
The BoJ has injected more liquidity into the system following 2 successive days of stock market blood bath.
The Marketwatch reports, (bold emphasis mine)
Japan's central bank injected 20 trillion yen ($245 billion) into the money markets Tuesday in an effort to help calm financial markets, according to reports. The move was designed to ensure that banks have enough liquidity to meet a surge in demand from companies and households seeking to raise funds. The same-day funds injection came as Japan's unfolding nuclear crisis deepened on Tuesday, with an explosion at reactor No. 2 and as the danger spread to reactor No. 4 at the stricken Fukushima nuclear plant. Elevated radiation levels were reported in Tokyo as southerly winds carried the radioactive plume from Japan's eastern coast towards urban areas.
This is in addition to yesterday’s injection.
As Economic Policy Journal’s Bob Wenzel writes,
There is no sound economic theory that suggests printing money can in any way help in the case of a physical disaster, as always this money will end up in the hands of the banking elite to provide them with an edge over those who have lost their homes and don't really need elitist bankers bidding against them for resources.
1 comment:
What would you have the BOJ do, Senor?
Post a Comment