The Mouths Of Madness - The Grand Delusion Of Central Bankers

Never before has the Bank of Japan done so much to achieve so little. Even after arranging a record stimulus program and reducing a key interest rate to less than zero, Bloomberg reports that the central bank has failed to boost inflation to its goal of 2 percent. Stocks are trading lower than when Governor Haruhiko Kuroda expanded his package of asset purchases in 2014. Exports are declining. One measure of bank lending is at a 14-year high, though loan growth is slowing compared with a year ago. While most sovereign bond yields have turned negative, corporate borrowing costs are lagging behind.

And as Bloomberg reports, the following four charts show where the BOJ is succeeding and failing:

CHART 1: While the central bank has succeeded in its aim of pushing down government bond yields, the declines in corporate borrowing costs are starting to run out of steam.

The Mouths Of Madness - The Grand Delusion Of Central Bankers 20160515_jap1

The Mouths Of Madness - The Grand Delusion Of Central Bankers 20160515_jap1

http://www.zerohedge.com/news/2016-05-15/mouths-madness-grand-delusion-central-bankers

The Mouths Of Madness - The Grand Delusion Of Central Bankers

The Mouths Of Madness - The Grand Delusion Of Central Bankers

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