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Bank of Japan joins Demolition Duo
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
The Bank of Japan could not stand to be left out of central bank idiocy and decided to join the demolition duo comprised of the ECB and U.S. Fed. The BoJ announced that it will waste an additional 10 Trillion Yen on its so called asset purchasing fund. It is quite amusing to see another central bank that is incapable when it comes to the identification of assets.
The most basic definition of an asset is something that puts money into your pocket. This definition is simplified to pre-school difficulty. This means even a five year old would understand the difference between an asset and a liability. Despite its simplicity, central bankers as well as old school economists have the most complication with it.
The ECB announced its bond buying program and decided to temporarily dismantle hope for a Eurozone recovery. Given the unstable situation to any of the mechanisms social pesticides have created, we have at the very least hope that they will be abandoned or amended to the point they will become useless. Currently the unlimited bond buying program together with the ESM are fully armed weapons of mass destruction aimed to kill free markets.
The Fed has followed suit and announced QE3 together with an announcement to keep interest rates where they are until mid-2015. The Fed has made it their agenda to kill any sign of economic growth and purchase liabilities for an unlimited time at a rate of $40 billion per month. The Septic Tank will crank up the entire inventory of printing presses and
devalue the U.S. Dollar even more until it ceases to exist. Monetary genocide is what the Septic Tank is after, a modern time Adolf Hitler. The U.S. did a great job to ring in its lost decade which at current pace may turn into a series of lost decades until the country falls apart into at least three to five independent countries.
Now the BoJ decided to add to their lost decade by adding another one. The BoJ had little trouble to announce its additional 10 Trillion Yen which would bring its liability purchase fund to 55 Trillion Yen. The Japanese are great at manufacturing as well as engineering, but they fail horribly at financial intelligence and love making.
The money central bankers and socialist governments waste on programs designed to fail is ridiculous. They claim they want to increase consumer activity as well as corporate activity. This is a pathetic claim. Central bankers have had their time to waste through real assets and wasted them on liabilities. It is time to revolt against this careless behavior of incompetent individuals who are not sophisticated enough to breath and talk at the same time.
The one thing which will stimulate economic growth almost immediately and will show that the real aim is to encourage sustainable economic growth. The one thing that will encourage economic growth is broad based tax cuts. Slash the corporate tax rate to 10%, eliminate personal income taxes altogether and get rid of the rest of the tax code. The one and only tax individuals should pay is a consumption tax on non-essentials. Food, energy as well as housing should be tax free.