Yra Harris provides several considerations on why Japan is now becoming even more aggressive on QE .. notes that Japan seems to exert pressure after international meetings: “The IMF and G7 and G20 ended in mid-October so either the Japanese wanted to avoid criticism about depreciating its currency or it received the GREEN LIGHT from the G7 members to get more aggressive on its QE efforts. Readers of NOTES FROM UNDERGROUND can revisit a blog post from October 15, 2012 when I noted that the G7 communique seemed to give the Japanese authorities a ‘wink’ in its efforts to weaken an overvalued YEN.” .. Yra Harris lists other factors as well on why the big push on QE now: a belief that it will work synergistically with implementing higher consumption taxes to drastically reduce the massive public debt .. also another hope is taking actions similar to what Bernanke did to encourage risk asset buying from financial repression: “The Government Pension Investment Fund (GPIF), Japanese insurance firms, banks and annuity investors will have offloaded JGBs to the ultimate buyer of last resort, THE BOJ. It seems Governor Kuroda has initiated Bernanke’s PORTFOLIO BALANCE CHANNEL and it’s pension funds are disposing of riskless assets and undertaking the purchase of domestic and foreign equities, as well as foreign bonds, an ‘all in’ play by the BOJ. Bernanke used financial repression to motivate private investors to take on more risk while its public sector entities buying equities in Japan.”

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