Once again the signs are bullish.
Kitco down - Dow down and gold up.
ANALYSIS-Tokyo markets give BOJ credit ease a thumbs down
By Yoshiko Mori
TOKYO, Sept 9 (Reuters) - The Bank of Japan (BOJ)'s surprise move to ease
credit further to rock-bottom levels will do little good for the nation's real
economy, for its banking sector or stock market, analysts and traders said on
Wednesday.
''I was struck dumb with amazement. A further credit easing will do little to
invigorate the economy or to restore the health of the banking sector. And it
is surely a deadly blow to investors,'' said Shin Nagai, vice president and
treasurer of ABN-AMRO Bank's Tokyo branch.
The BOJ announced on Wednesday that it would target the key overnight call
rate at 0.25 percent and seek to expand money supply by providing ample
liquidity. For the past three years, the central bank had targeted the key
call rate to move a bit below the 0.5 percent discount rate level, on
average.
''It is a big question, whether (BOJ's move) will result in an expansion of
the money supply and solve the problem of the credit crunch,'' Susumu Kato,
chief economist at Barclays Capital, said.
ABN-AMRO's Nagai said a further rate reduction would only make it easier for
healthier banks to raise funds at a cheaper cost, while leaving intact the
severe fund-raising difficulties that some banks are experiencing.
''Unlike other countries, interest-rate levels in Japan are already low, so I
doubt it will have much impact on the stock market. The move could be seen as
part of a global (interest rate) policy coordination.'' said Keiko Kondo, a
strategist at Merrill Lynch Japan Inc.
BOJ Governor Masaru Hayami, however, denied at an news conference it was part
of a concerted international action.
A lower domestic rate could reduce the financial burden on banks, which would
be good for supporting banking shares, Kondo said. But restructuring is what
the sector needs, and rate easing will not achieve that, she added.
Hayami said the BOJ conducted a monetary easing at this time because of ''a
severe worsening in Japan's economic conditions and a rise in concerns about
the financial system.''
Economists doubted its impact on the real economy.
''Unfortunately, demand for funds in the economy remains quite weak. It's not
going to have much of an impact, but its a clear signal that financial
authorities are getting worried about the survival of major financial
institutions,'' Schroders economist Andrew Shipley said.
Meanwhile, fund managers expressed dismay and said they planned to allocate
more funds to overseas securities markets.
''The lower interest rates deal a serious blow to the financial health of the
already shaky fund management side by further hurting their investment
performance,'' Nagai said.
During the easy credit policy days since September 1995, income gains for
depositors and pensioners have declined drastically, slashing their purchasing
power and dampening already weak spending, economists said.
''I understand how depositors and pensioners feel, but the priority goes to
rejuvenating the economy,'' Hayami said.
Capital flow out of Japan will only increase after the BOJ easing, fund
managers said.
================================
These idiots are so hapless and helpless that they don't realize that just
about anything they do will be harmfull at this late stage. Lower rates? LOL
LOL LOL They are already so low that it does not make the slightest bit of
difference, in practical terms' if they are lowered more. It will only force
more money to flood out out of Japan, the LAST thing they need.
They just poured a bucket of gasoline on the bonfire.
ROTFLMAO
This was so inept that I can barely keep the tears out of my eyes, I'm
laughing so hard.
They tried a Keynesian approach. Nothing. Now a Monetarist last ditch effort.
Clutching at straws like the rubes that they are.
And the people behind these moves actually think of themselves as 'economists'
LOL LOL
--
Paul Milne
"If you live within five miles of a 7-11, you're toast"
'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
Indonesian mobs loot rice from warehouses. trucks JAKARTA, Sept 9 (Reuters) -
Hundreds of Indonesians, hit by rising prices, have looted warehouses and
trucks of rice in two parts of the country, a military official and witnesses
said on Wednesday.
Looters raided several warehouses of rice and other essential commodities in
several small towns around the city of Pontianak in West Kalimantan province
on Tuesday, a military officer in the region said.
Most of the warehouses were owned by ethnic Chinese, who are a minority in the
country but control the economy and are thus often the targets of violence by
resentful mobs.
''The mobs have been looting essential goods at a number of ethnic Chinese
warehouses, particularly looking for rice, in several towns,'' Lieutenant
Yasmin, a military officer in the village of Siantan near Pontianak, told
Reuters.
==============================
This is what people do when they do not have food. Indonesians are people
just like Americans are people. When they don't have food available, they
will steal it. They will have no other choice.
All around you are the warning signs of what happens when food runs out, but
you Pollyannas still do nothing. Hyperinflation in Russian, violence in
Indonesia. But still you sit on your assess. And yes, this is exactly why I
will LAUGH at you when the SHTF. You have been warned REPEATEDLY and you do
nothing.
Once upon a time there was a man sitting on a beach. Another man walked over
to him and said,"You know, an earthquake was detected off the coast and there
is a good liklihood of a tsunami hitting this beach. You ought to leave."
"I don't see any Tsunami."
"Well, you won't see it until it is too late. By the time you see it , it will
be upon you. You need to move BEFORE it gets here or it will kil you."
"You just WANT to see me die you HATEFUL FEARMONGER."
"No, I am trying to save your life. It will be here soon and you and your
family ought to get to a safe place."
"You coward! Run away. Defeatist pig. I see absolutely no evidence of a
tsunami and I am staying right here."
Yup, I LAUGH OUT LOUD at the morons who have been warned and then get wiped
out. It is what their folly deserves.
biz.yahoo.com
--
Paul Milne
"If you live within five miles of a 7-11, you're toast"
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