Foreign Grip Loosens on Treasuries as U.S. Investors Buy (Mar 2014)

 

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Source: Bloomberg – Foreign Grip Loosens on Treasuries as U.S. Investors Buy

Notable excerpts:

Overseas creditors such as China and Japan enabled the U.S. to spend its way out of the recession as they gobbled up 80 percent of the nation’s Treasuries. Now, their holdings are dropping toward the lowest level in a decade, while homegrown investors have picked up the slack.

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Japan cabinet approves $53 billion extra budget to fund stimulus (Dec 2013)

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: Reuters – Japan cabinet approves $53 billion extra budget to fund stimulus

Notable excerpts:

Japanese Prime Minister Shinzo Abe’s cabinet approved on Thursday a $53 billion extra budget for the current fiscal year to fund stimulus steps announced last week aimed at offsetting the blow from a planned increase in the national sales tax.

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Japan Wages Pressured by Fastest Inflation Since 2008 (Dec 2013)

BOJ

Source: Bloomberg – Japan Wages Pressured by Fastest Inflation Since 2008

Notable excerpts:

Japan’s inflation accelerated to the fastest pace since 2008 last month, bringing the rate closer to policy makers’ target while threatening to erode household spending power unless employers boost wages.

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BOJ Said to See Significant Room for More Bond Purchases (Dec 2013)

BOJ

Source: Bloomberg – BOJ Said to See Significant Room for More Bond Purchases

Notable excerpts:

Bank of Japan officials see significant scope to boost government bond purchases if needed to achieve their inflation target, according to people familiar with the discussions, signaling little concern with perceptions of underwriting fiscal deficits.

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Currency devaluation becomes the solution to all economic problems

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: BullionStar – Currency devaluation becomes the solution to all economic problems

Days before Shinzo Abe became Japan’s prime minister in December 2012, he remarked “Central banks around the world are printing money, supporting their economies and increasing exports. America is the prime example. If it goes on like this, the yen will inevitably strengthen. It’s vital to resist this.

Shinzo Abe’s remarks summarized a prevalent theme in central banks’ attempts to jumpstart their domestic economies today – money printing. I prefer to call it currency printing since it is fiat currencies that are being created out of thin air.

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