The Gold Standard | On the highway to fiat money debasement

To the United States shall go the credit for constructing and beginning the ride on the highway to eventual fiat money debasement and the collapse of the fiat money system. One by one – reluctantly or otherwise – other countries are joining the highway and the traffic is getting busier.

Close on the heels of the decision made by the Swiss National Bank yesterday to ease interest rates and to boost money supply, the Bank of Japan announced an enhanced asset purchase programme. It has raised the amount set aside for asset purchase by 10 trillion yen to 50 trillion yen. More yen printing. See the release here.

I have no problems with the Bank of Japan doing this. In fact, the Bank is right to embark on this as it is the only country battling deflation. In fact, the Bank states that revisions to the official consumer price index would show more entrenched deflation. All the more reason.

The Bank gets it spot on for Emerging market economies:

As for emerging and commodity-exporting economies, there remains a high degree of uncertainty about whether price stability and economic growth can be realized at the same time

Amen to that. That is official-speak for saying categorically that they cannot.

DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.