BoJ: I feel nothing alive from them
I don’t really keep the exact dates of who did what on when, so let me very vague: a couple of days ago, the Bank of Japan had a two-day meeting and decided to expand their monetary policy. Such policy includes to increase ETF buying from an annual pace of 3.3 trillion yen to 6.0 trillion yen and so on. Even if we take political pressures and external pressures into an account, still, BoJ has done nothing good.
The first impression that I had from them was they are pretty screwed. I vividly remember the day when Mr. Kuroda came: he was alive and bright. Now, he seems like dyeing. Appearances beside, I feel nothing alive from them, BoJ. And I think a lot of Japanese feel the same way as me.
Economic conditions are written as “景気” in Japanese. “気” is a word that indicates our mindset. Yes, economic conditions are about economic figures — how many jobs there are, what the inflation rate is, what the GDP figure is, and all those numbers. But I think there is something underlying that cannot be quantified easily: our mindset. If people cannot feel anything alive from BoJ policy, how would we expect something good in the future?
I suggest we need something, something that moves our mindset from negative one to positive one. That can only be done by Mr. Kuroda and Mr. Abe, nobody else.
While I was writing this article, I feel like “helicopter money” may work in Japan. Japanese people are so deflation-minded, I do not think they are going to use money even if it just flew from the sky. Just saying… I do not feel like Yen is going to crush because… you know, what are you going to buy besides Yen? QE was supposed to be a wonder drug… and has only been working as an over-the-counter drug… If “helicopter money” is a powerful more-or-less poisonous drug, maybe it may only work as a wonder drug? Just saying…
Well, I am looking forward to seeing what is going to happen after the September meeting.