Bank of Japan pumps another $37bn to ensure market calm
Has anyone on this board done the math to try and figure out how much more Fiat Currency was "pumped" into the world markets since last friday. I read in the WSJ this morning that the G7 pulled off the largest coordinated effort of fiat currency manipulation since 2000.
I seems to me that without any more material production or value (quite the opposite with all manufacturing negatively impacted world wide); that it's a race to the bottom as the G7 and other goverments continue to "inject" and "ease" monetary pressures (as opposed to real production and market forces), that fiat currently will continue to take a nose dive in comparison to hard currencies.
Bank of Japan pumps another $37bn to ensure market calm:
"Japan could borrow. However, with a debt-to-GDP ratio of some 200 percent, or twice as bad as that of the United States, and with the main credit rating agencies exercising more scrutiny than before the Credit Crunch, raising funds will be difficult at an economic rate of interest. Moreover, Japan will likely be spending a large chunk of its foreign exchange reserves to buy oil to replace its lost nuclear power generating capacity - diminishing its collateral in the eyes of creditors.
Japan could follow the US example and "paper over" its problems. But without the benefits of being the international reserve currency, the Japanese would immediately feel the effects of domestic inflation. The Bank of Japan has already pumped out ¥8 trillion ($98 billion) in the wake of the earthquake, but it is unlikely to try to match the Fed's $600 billion printing spree this quarter.
So, if Japan is limited in its ability to borrow or print money, it may have to sell part of its vast holdings of US Treasuries."