Japan monetary base up 36% yoy

[phantom_opera]

Monetary Base Up 36% On Year June, Hits Record High

TOKYO (NQN)--Japan's monetary base rose 36% on the year in June to 163.53 trillion yen, marking the 14th straight month of increases, the Bank of Japan said Tuesday.

The balance of current accounts was 76.15 trillion yen, up 114.5%. Both figures hit record highs for the fourth straight month.

The monetary base at the end of the month, which the BOJ began releasing data on in April, was 173.12 trillion yen. That was up from 159.16 trillion yen at the end of May.

The monetary base is the sum of currency in circulation and commercial bank reserves at the central bank.

=> catching up with other central banks :doh:

[phantom_opera]

http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png

[leesg123]

too cheem, so wats the implication?

[princess_morbucks]

too cheem, so wats the implication?

I also don't understand, so I read this article.

http://www.stlouisfed.org/publications/re/articles/?id=1310

My conclusion is that increase in monetary base is due to increase in printing of money which devalues the country's currency and lead to inflation.

Bro ghost, is it correct?

[phantom_opera]

"potentially inflationary" ...

and yes, if this money printing keeps going on, you can count on it to vingtuple (20x) your money in 40y:

If you save $100 per week, and manage to get a 10% return on your investment, you will have $331,911 after 20 years(with $104,000 contributed) and $2,784,424 after 40(with $208,000 contributed). That mean you will have tripled your money in 20 years, or vingtupled* it in 40 years.

That’s how you get rich. $100 per week for the rest of your life will leave you with a comfortable retirement, without missing out on life now.

=> Ponzi?? A Tiong Bahru HDB in 1970 cost 7k, now it is 300k+:scared-1:

[indomie]

I also don't understand, so I read this article.

http://www.stlouisfed.org/publications/re/articles/?id=1310

My conclusion is that increase in monetary base is due to increase in printing of money which devalues the country's currency and lead to inflation.

Bro ghost, is it correct?
Only if the speed of circulation (velocity) increase too. In the US the speed of circulation is actually slowing down (due to high unemployment), therefore the inflation is not wide spread (contained).

[phantom_opera]

"Modern capitalism is based on a global ponzi scheme," he (Joschka Fischer, the former German vice-chancellor) said. "There is no quick fix to this very severe crisis. It will transform global reality in a similar way as the collapse of the Soviet Union transformed the global system 20 years ago."
Global power was shifting from West to East, "and it's completely short-sighted to believe that other powers will look after our interests", Mr Fischer said in a speech to the London School of Economics.
"We are ignoring the basic facts – we're discussing whether we are creating super-states or not, whether to help Berlusconi or not – but we don't discuss our relative decline."
The result, he predicted, would be an acceleration of the transfer of power from West to East – something that did not bode well for an inward-looking Europe.
"If you walk through the corridors of Washington these days, everyone's talking about China. Add India, Indonesia and Southeast Asia," he said. "It was not by chance that Hillary Clinton made her first foreign trip to Asia."
As Eastern EU economies crumbled, "there is a serious question mark: whether richer European economies understand that they must contribute to the refinancing of those economies. Otherwise, enlargement is in danger... [and] we will invite other powers to play games in a very unstable and insecure situation. I'm not talking just about the economy, but about peace and insecurity on the European continent."
Mr Fischer, 60, who was foreign minister and vice-chancellor under Gerhard Schröder, the former chancellor, from 1998 to 2005, added: "Europe is in a very precarious situation because we are strongly integrated with the common market and the euro zone. On the other hand, Europe is not integrated enough to act decisively. We don't have streamlined institutions. We don't have a strong common foreign policy or security policy."
He said Europe was weak in dealing with Russia, Afghanistan, Iran, Pakistan and crises in the Middle East.
Europe would become irrelevant – and vulnerable – if it kept failing to speak with a united voice, beginning with the creation of "a strong European pillar for Nato".
"America will follow its interests and the question will be simple: can you deliver? [If yes], then trans-atlanticism will have a future. If Europe cannot deliver in time, and deliver enough, then I predict huge problems."

[indomie]

Ask yourself, what happen to sg if stop taking in new migrants? Old folks don't spend much money and they are not as productive as the younger one. This will create a deceleration of money circulation.

The "speed" of money in circulation can even overcome inefficiency.

Imagine you only make 1 dollar profit for each item u sell, but u can sell 100 of those item per day. Then u are making 100 dollar profit.

Imagine your competitor can make 3 dollar profit per item, but can only sell 20 item per day. He can only make 60 dollar profit.

Western countries are continuing to decelerate, while asians are accelerating. No matter what kind of innovation western countries are making to their products and services, they can never catch up economically. Unless they are willing to open their door to migration.

[princess_morbucks]

Ask yourself, what happen to sg if stop taking in new migrants? Old folks don't spend much money and they are not as productive as the younger one. This will create a deceleration of money circulation.

The "speed" of money in circulation can even overcome inefficiency.

Imagine you only make 1 dollar profit for each item u sell, but u can sell 100 of those item per day. Then u are making 100 dollar profit.

Imagine your competitor can make 3 dollar profit per item, but can only sell 20 item per day. He can only make 60 dollar profit.

Western countries are continuing to decelerate, while asians are accelerating. No matter what kind of innovation western countries are making to their products and services, they can never catch up economically. Unless they are willing to open their door to migration.

Wow. This is a good explanation!

So if a country does not welcome imigration and is facing a greying population, using your example, the person make 1 dollar profit per item (cos labour cost is high if rely on local labour) and can only sell 20 items per day (cos older generation don't spend much). End up with only 20 dollar profit.

If let say almost all countries accept immigrants, then what will happen?
Will the effect be neutralized?

[jslee78]

The recent property control measure issued by MAS has the effect of slowing down money velocity, despite plenty of liqiudity, and thus help to control inflation. Does this work?

[phantom_opera]

lets monitor COE