BOJ To Start Lending ETF Shares To Prevent Market Freeze


Zero Hedge: While most central banks are contemplating how to gently break it to the public that since they are out of ammo with interest rates at all time low, and $15 trillion in global sovereign debt is now yielding negative – a financial abortion which suggests the value of money is negative – the only hope markets have to avoid collapse is for central banks to start buying stocks in the open market, the BOJ has no such problems: after all the Japanese central bank (alongside its Swiss peer) has for years been quite open that it purchases stocks and ETFs directly.

Unfortunately, in its efforts to stabilize the market, the BOJ has been purchasing a little too many ETFs and it now owns far too much.

Last May, speaking to Japanese parliamentarians, BOJ Governor Haruhiko Kuroda noted that the central bank now owns nearly 80% of the country’s stock of ETFs, the result of a program begun in 2010 and ramped up in 2013. more …

Opinion: And what does the BOJ use to buy 80% of the nation’s stocks?

It’s monopoly money, fiat currency, counterfeit. That’s what.

But Japanese citizens are happy as long as their stocks keep going up and the sake keeps flowing. Why worry?

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning” Henry Ford.

Japanese debt to Gross Domestic Product (GDP) stands at 238.20% more than double that of the U.S., which stands at 108%, according to the International Monetary Fund.

Think about that for a moment. Japan is buried in debt. Japanese interest rates are negative as they are in most of Europe.

If/when a financial panic happens, the BOJ and European Central Bank (ECB), will be  powerless to stop it without printing trillions more in currency. But what will happen if the financial panic hits the US as well, and rates go negative all over the world?

The US economy is the engine of the world and it is also the most Christian nation in the world. The EU is the second largest economy and second in Christian population. Imagine the global effect if millions of those tax paying Christians disappeared (1 Thess. 4:16-18) all at once.

As it was in the days of Noah, so it will be at the coming of the Son of Man. For in the days before the flood, people were eating and drinking, marrying and giving in marriage, up to the day Noah entered the ark; 39 and they knew nothing about what would happen until the flood came and took them all away.” Matthew 24:37-39

Thanks Vason for sending this article in