Addiction: Bank of Japan to pump $1.4 trillion into economy in unprecedented stimulus

wave cc

Just one more hit. That will make everything better. Just…one…more…hit……….

Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.

(From Reuters)

New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014, a dose of shock therapy officials hope will end two decades of stagnation.

The policy was viewed as a radical gamble to boost growth and lift inflation expectations and is unmatched in scope even by the U.S. Federal Reserve’s own quantitative easing program.

The Fed may buy more debt, but since Japan’s economy is about one-third the size of the economy, Kuroda’s plan looks even bolder.

“This is an unprecedented degree of monetary easing,” a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.

Click here for the article.