More global quantitative easing is happening. Unfortunately, it is coming on a day when the U.S. markets are closed so the news may fall on deaf ears in America. Elsewhere the reaction was muted. The Bank of Japan is throwing in more stimulus and more quantitative easing measures. This is the second month in a row. The central bank voted to boost asset purchases by some 91 trillion yen from 80 trillion yen, and it is planning a new lending facility in order to increase its bank loans to the tune of 25 trillion yen.

Today’s increases were as follows:

• Japanese government bonds with coupons, about 39 trillion yen
• Treasury discount bills about 19.5 trillion yen
• Commercial paper about 2.2 trillion yen
• Corporate bonds about 3.2 trillion yen
• Beneficiary interest in index-linked exchange-traded funds about 2.1 trillion yen
• Investment equity issued by real estate investment corporations about 0.13 trillion yen.

Japan is aiming its fight at deflation. The bank said, “The Government and the Bank share the recognition that the critical challenge for Japan’s economy is to overcome deflation as early as possible and to return to a sustainable growth path with price stability.” It also said, “The Government strongly expects the Bank to continue powerful easing as outlined in section 2 until deflation is overcome.”

We already have looked around at the reactions to the easing. It seems that no one cares, and those that did care seemed to be disappointed, wanting more. The total came to about $138 billion or so. Unfortunately, $138 billion just is not quite what it used to be.

JON C. OGG

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