Japan's new Prime Minister Shinzo Abe is determined to revive the country's faltering economy. Today he announced a $117 billion stimulus package and in less than two weeks the Bank of Japan will consider extending its easy monetary policy for the second meeting in a row—something it hasn’t done since 2003.
Under pressure from Abe, the BOJ is expected to expand its purchases of government bonds and double its inflation target to 2%. This move is expected to devalue the yen in an effort to boost exports and the broader Japanese economy.
Japan's monetary policies will hurt Japan's economy and the U.S. economy, says Peter Schiff, CEO of Euro Pacific Precious Metals.
“Japan doesn’t need more inflation," he says. "They actually need a stronger yen, higher interest rates. They need to allow their economy to restructure…to shrink government. Instead they’re simply going to do more of what’s been failing for the past two decades.”
Schiff tells The Daily Ticker that if inflation rises inRead More »from Japan’s Monetary Policies Are Disastrous for U.S. Economy: Peter Schiff