Reports are that Japan is set to undergo discussions on the possibility of more monetary stimulus. Because the previous stimulus has worked so well? And zerohedge is reporting that Canada has sold off half of their gold reserves in recent weeks. Good timing? lol
Thanks for your post fhl. Do you have a link for an article that discusses the reports of Japan considering more stimulus? .
Found more on the gold selling in Canada. They have 82B in total reserves and sold about 80M in gold to reduce their gold holdings from 100M to 20M. The amount of funds involved is incredibly minor.
The asset allocation of Canada's central bank is the point. Canada sells off most of its gold reserves http://www.cbc.ca/news/business/gold-canada-reserves-1.3443700 Canada, one of the world's largest gold mining countries, holds almost no gold in central bank reserves. "The government has a long-standing policy of diversifying its portfolio by selling physical commodities (such as gold) and instead investing in financial assets that are easily tradable and that have deep markets of buyers and sellers," At current levels, our gold holdings amount to less than 0.1 per cent of the $82.6 billion US that Canada has in official international reserves. The U.S., by comparison, had 8,133 tonnes of gold (261.5 million troy ounces) as of the end of 2015, according to the World Gold Council, worth almost $300 billion US. That amounted to more than 72 per cent of its total foreign reserves. --------- Gold at the ready in it's own country and yet prefers to hold currencies, because the market for them is deep. I'll say they're deep. Central banks print them up like hotcakes. Sorry to all the Canadians on here that your central bank is that nutty.
"Bank Of Japan Unleashes Yield Curve Chaos: JGBs Inverted At Short- And Long-End" http://www.zerohedge.com/news/2016-...-curve-chaos-jgbs-inverted-short-and-long-end Quote from article: "This means, as BNP Paribas warns, that there is a risk that The BoJ’s bond buying operations will fail to meet target this month" *** "Japan Yields Extend Plunge to Records as Bonds Get Scarce: Chart" http://www.bloomberg.com/news/artic...d-plunge-to-records-as-bonds-get-scarce-chart .
While it may be difficult to cut interest rates significantly below -0.50%, there are very few limits to loose fiscal policy. "Japan Goes Full Krugman: Plans Un-Depositable, Non-Cash "Gift-Certificate" Money Drop To Young People" http://www.zerohedge.com/news/2016-...table-non-cash-gift-certificate-money-drop-yo .
Here is Mish reporting on the curve inversion: http://mishtalk.com/2016/03/23/japans-negative-yield-inverted-bond-market-close-to-breaking-point/ .