by John Galt
July 29, 2016 00:20ET
The drunk squirrel used to headline this story has nothing to do with Japanese Monetary Policy.
Nor does the pink haired Japanese chick.
Or do they?
From the Bank of Japan minutes ago (via Reuters):
The Bank of Japan expanded monetary stimulus on Friday through a modest increase in purchases of exchange-traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2 percent target.
But the central bank maintained its base money target at 80 trillion yen ($775 billion) as well as the pace of purchases for other assets including Japanese government bonds.
It also left unchanged the 0.1 percent interest it charges to a portion of excess reserves financial institutions park with the central bank.
The BOJ said it will increase ETF purchases so that its total holdings increase at an annual pace of 6 trillion yen, up from the current 3.3 trillion yen. The decision was made by a 7-2 vote.
I thought there was a major crisis and they would bombard the world with Godzilla money to save the day!
Markets no likey:
While the Nikkei 225 is off only 1.07%, everyone else is so confused and nervous there is no reaction, no volume, no clue.
Which means Sunday night to Monday morning will be the rally of all time to break the back of the bears or the start of the MOABSOIA (Mother of All Bear Selloffs In August).
If you’ll excuse me now, I’m going to go have one more beer with that squirrel.