Bank of Japan stands back from further stimulus

How can a shrinking economy = a moderate recovery? The BOJ is conjuring up 8000000000000000 yen of free money a year, every year and where's it all going to? Something ain't right........

Flooding the markets with money was supposed to boost economic growth by lowering real interest rates.

It hasn't happened (or at least economic performance is still pathetic, even if it has been better than would otherwise have been the case).

Instead of continuing on aimlessly with risky failed policies, I'd like to see government enacting pro-sustainable growth measures to crank up economic activity domestically, without relying on non-existent demand from overseas, or spending money on politically favoured targets. Even just the bureaucracy and politicians resigning or going on holiday en masse would be a boost, as all the new and useless rule making activities would be frozen.

Just imagine if every government around the world took such a pro-growth stance. Printing loads of money just doesn't cut it.

"The BOJ is conjuring up 8000000000000000 yen of free money a year, every year and where's it all going to?"

It's used to buy assets from the commercial banks, like bonds. It's a swap, so it's not "free."

Low growth and the conundrum over loose monetary policy amid low domestic consumption is no longer a Japan-only thing. Almost all the countries are in the same boat.

Almost all the countries are in the same boat.

By accident or on purpose? Central bankers make little money on peace and tranquility, but show them an interests rate, and they get all gushy.

It should also be mentioned that Japan's economy was being dragged down by the failed Abenomics fiasco.

There will be more once the endless cycle of monetary easing starts up again. Wait and see if Fed doesn't bottle it and not raise later this week.

Just imagine if every government around the world took such a pro-growth stance. Printing loads of money just doesn't cut it.

No need for any imagination, just follow the news from all the other countries doing the same thing. And the results are the same as they have been in Japan, for reasons that are not difficult to understand. It is an asset swap, not a stimulus. And I would love to hear an explanation of "printing loads of money doesn't cut it". The statement is just so hopelessly wrong on multiple levels!!!

but said the economy was being dragged by a slowdown in key emerging markets,

Yup, its those damned "emerging markets" fault that the Japanese economy sucks, rather than the fact that the country refuses to accept reality and implement long-overdue structural reforms. Always easier to kick-the-can down the road and believe you are the victim, even when it comes to your own economy. Classic.

Boosting prices has been a cornerstone of efforts by Prime Minister Shinzo Abe to conquer years of damaging deflation that has sapped growth.

Three years of inflation and currency devaluation (plus a tax increase) have done more to damage the public's economic security than the decade-plus of tiny price declines, which were beneficial to the regular salaryman who saved money regularly. The only growth that was being 'sapped' in those years was the growth in the wealth gap between the top 1% and the rest of the public -- a gap that grew substantially in places like the US, UK, and EU where inflation was being foisted on the public the entire time.

Printing money doesn't cut it, needs explanation?! Look to Japan, planet earth for actual results.

I was asking rhetorically. Anyway! Of course it's the banksters that are loaning it out so Japanese companies that can then pay record amounts of cash for overseas companies.Imagine if the ordinary man in the street saw some of it! Kuroda would have his 2% inflation in no time! But the ordinary Japanese citizen sure ain't seeing any of it....

Printing money doesn't cut it, needs explanation?! Look to Japan, planet earth for actual results.

That's pretty much the level of in-depth "explanation" I was expecting. As for planet earth, is that the same planet where you claimed in the previous thread that people should be investing overseas "where there has been constant economic growth" and "it is only japan that has failed to grow"? It must be very exciting and a big relief for people from said "overseas" countries when they visit this website and learn such "factual information".

As for looking to Japan to see why "money printing doesn't cut it", well can't do that because there is no "money printing" actually going on. Not physical money printing (and God help anybody so stupid that they believe that money printing means the BOJ is physically printing yen notes) or electronic money printing. All that is happening are asset swaps. The BOJ buys government bonds from the financial sector, which the financial sector previously bought with EXISTING MONEY. Or the BOJ buys other financial assets from the financial sector, the money being created (or "printed") when the original loans were made, not when the BOJ buys them. All the BOJ has done has paid off the loan so that the banks don't have to take any losses, and increased bank reserves but not money in circulation. Anybody who doesn't understand that (including those running the BOJ) has the exact same level of understanding of the situation as the amount of money that has been "printed", which is zero.

"it is only japan that has failed to grow"?

Yes. This much is basic knowledge, and why Japan alone is described as having suffered two "lost decades".

As for looking to Japan to see why "money printing doesn't cut it", well can't do that because there is no "money printing" actually going on.

Just get used to the figure of speech kiddo - the point remains that it doesn't cut it, whatever you want to call it.

Just get used to the figure of speech kiddo - the point remains that it doesn't cut it, whatever you want to call it.

Apparently some people have no clue when to stop digging. "Printing money doesn't cut it" is now "Printing money is a figure of speech to describe whatever is going on that is not actually in fact "printing money" but still doesn't cut it". What the "figure of speech" is actually supposed to mean is of course left unexplained.

Yes. This much is basic knowledge, and why Japan alone is described as having suffered two "lost decades".

The key here is the word "two". If your level of "basic knowledge" doesn't extend to knowing why that is the key word, and that the same process is now taking place everywhere just from a later starting date, then you have demonstrated conclusively that you don't have any.

What the "figure of speech" is actually supposed to mean is of course left unexplained.

Whatever you accept it be called is besides the point, which is that the BOJ's operations haven't produced the advertised results.

the same process is now taking place everywhere just from a later starting date

I take it that is your forecast, but personally I expect growth in other parts of the world in the years ahead.