Japan keeps printing money to defend the long end of their JGB curve. “Whatever it takes” has been ratified by the Japanese government, and as you can see from the chart below, massive 11Tn Yen weekly purchases have been implemented. Simultaneously, Christine Lagarde, president of the #ECB has announced a “new set of tools” to control the yield of the periphery long term bonds. One keeps wondering if the new tools will be the same old tools under a different acronym. The truth is, the biggest challenge central banks have today is inflation, and all these measures that involve money printing, are inflationary. It would appear they’re trying to extinguish fire with gasoline.
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Source: Bloomberg
