Japan's Shinzo Abe Prepares to Print Money for the Whole World !
- Japan’s Shinzo Abe prepares to print money for the whole world!
by Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
The profound shift in economic strategy by the world’s top creditor nation could prove a powerful tonic for the global economy, with stimulus leaking into bourses and bond markets – a variant of the “carry trade” earlier this decade but potentially on a larger scale.
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“We think this could be the beginning of a fresh reflation cycle for the global system, combining with the US recovery to mark a turning point in the crisis,” said Simon Derrick from BNY Mellon.
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“It is tremendously important for global growth, and markets are starting to take note,” said Lars Christensen from Danske Bank.
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Mr Abe’s Liberal Democratic Party (LDP) won a landslide victory on Sunday, securing a two-thirds “super-majority” in the Diet with allies that can override senate vetoes.
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Armed with a crushing mandate, Mr Abe said he would “set a policy accord” with the Bank of Japan for a mandatory inflation target of 2pc, backed by “unlimited” monetary stimulus.
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