Hey Gold BugsHold onto your hats!We have had the US Federal...

Hey Gold Bugs

Hold onto your hats!

We have had the US Federal Reserve activate an OPEN ENDED Round of QE (Money Printing) of $40Billion per month, which is expected to run for the next 12-24 months!

Last night we had the Bank of Japan announce that they will print $US127Billion!

On top of this we have the Bank of England Printing $50Billion on a monthly basis to buy British Govt Debt!

Keep your eyes on the Gold and Gold Stocks Prize!
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I Hold: IndoCHine Mining (Gold Developer PNG) ASX:IDC
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Cheers Nectar

Bank of Japan easing spurs rally on markets

by: Rick Wallace, Tokyo Correspondent
From: The Australian
September 20, 2012 12:00AM

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JAPAN'S central bank has joined the US Federal Reserve and European Central Bank in pushing the stimulus button with a new easing move that triggered rallies on regional stockmarkets.

The historically conservative Bank of Japan voted unanimously to increase its asset purchase fund from ¥70 trillion ($845 billion) to ¥80 trillion while maintaining its near-zero interest rates.

Japan's Nikkei index closed 1.2 per cent higher to a four-month record close of 9234.

The move also appeared to lift Australian shares, with the S&P/ASX 200 index climbing more than half of 1 per cent to 4400. The Australian dollar was lower at $US1.0461, down 0.05c from Tuesday's close.

Markets in South Korea (0.15 per cent), Singapore (0.26 per cent), Hong Kong (1.1 per cent) and Taiwan (0.55 per cent) also rose.

The bold move from the bank took analysts and Japan's Finance Minister by surprise. "The BoJ took more action than we anticipated," Finance Minister Jun Azumi told reporters, adding that the decision was timely given signs of slowing growth in the Japanese economy.
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BNP Paribas economist Hiroshi Shiraishi said the BoJ really had to move to try to prevent the yen rising amid easing moves in the US and Europe.

"It also shows the BoJ is becoming more concerned about the outlook and it shows they are concerned about the exchange rate," he told The Australian.

The US dollar rose quickly against the yen following the announcement. It increased from ¥78.69 to ¥79.15, which helped drive up the share prices of export-focused Japanese manufacturers. Mr Shiraishi said, however, that he expected the effect on the currency to be temporary.

The BoJ made its move after it released a downgraded assessment of the country's economy amid concern about a slowdown in overseas economies.

"These measures in pursuit of powerful monetary easing will make financial conditions for such economic entities as firms and households even more accommodative by further encouraging a decline in longer-term market interest rates and a reduction in risk premiums," the central bank said in a statement.

The slight uptrend in economic indicators that resulted from post-tsunami reconstruction spending in Japan appears to have petered out and higher energy costs are now hurting Japan's balance of payments.

Recent weak data, including a slump in exports and factory output, appeared to dint any hopes from the BoJ and its governor, Masaki Shirakawa, that global demand would soon rise and spur a recovery in the export-reliant economy.

The BoJ said "the pick-up in economic activity has come to a pause" as overseas economies have "moved somewhat deeper into a deceleration phase".

The central bank said much uncertainty remained about the US economic recovery and the European sovereign debt crisis.

It is the first time since April 27 that the central bank has decided to undertake additional monetary easing. At the April policy meeting, the BoJ decided to expand its asset buying program by ¥5 trillion to ¥70 trillion.

Under the program, which is the BoJ's main policy tool, the central bank purchases government and corporate debt as well as some riskier assets, including exchange-traded funds and real estate investment trusts, from financial institutions to ease monetary conditions and boost economic growth.