I took this from todays Reuters:
Policy board mulled easing monetary policy--BOJ
TOKYO, June 16 (Reuters) - The Bank of Japan considered ways to ease monetary policy at a recent policy board meeting that decided by a majority to maintain the current policy, Bank of Japan Governor Masaru Hayami told a news conference on Tuesday.
The decision by the BOJ's policy board, which met last Friday, was the first in which the vote was not unanimous since they began disclosing results of the meetings in January.
The board considered steps such as lowering the reserve requirements of private banks, as well as adjusting guidelines for overnight call rates, including giving markets a target range where the BOJ wanted the call rates to be, he said.
Someone recently said that the fractional banking system wouldn't allow the money pumping. Then change the fraction. The most bullish thing you can do is lower reserve requirements. Remember Econ 101? The three things Central Banks have in their bag of monetary tricks? If the BOJ doesn't like the aerialist yen trick, they could sure use the reserve requirement ploy. That would enable shaky banks to repair their balance sheets too. Notice that it was the first vote that wasn't unanimous. They are caving in on neo-mercantilism. The charade is over. When the monetary policy change comes, Japan will end up creating an inflationary configuration because they have spent so much time hanging on to the past.
Japan will be inflating, the yen will be up, and the US inflation will no longer be masked. The American Unions will be wild cat striking for protection and oil will be racing up. Gold is looking better and better. Glad I'm among the uninformed minority. It's great to truly be contrary.
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