{"id":18000,"date":"2016-02-19T11:18:21","date_gmt":"2016-02-19T16:18:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18000"},"modified":"2016-02-19T11:18:21","modified_gmt":"2016-02-19T16:18:21","slug":"revolt-against-nirp-breaks-out-bank-of-japan-baffled","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18000","title":{"rendered":"Revolt against NIRP Breaks out, Bank of Japan \u201cBaffled\u201d"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2016\/02\/19\/revolt-against-nirp-bank-of-japan-baffled\/\" target=\"_blank\">Revolt against NIRP Breaks out, Bank of Japan \u201cBaffled\u201d<\/a><\/h3>\n<h2 class=\"entry-meta\"><\/h2>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"ssba ssba-wrap\"><strong>Meanwhile, exports collapse at fastest rate since 2009.<\/strong><\/div>\n<p>This would be hilarious, if it weren\u2019t so serious: Frazzled politicians, during a parliamentary session, lambasting the governor of their central bank over its new negative interest rate policy. But this is what happened in Japan.<\/p>\n<p>Central-bank imposed negative interest rates have caused a lot of financial mayhem. Since they\u2019ve contaminated much of Europe, they\u2019ve dragged most major stock indices into a bear market. In the US, stocks fell hard as well. The Nasdaq sidled up to a bear market before bouncing off and is now down \u201conly\u201d 14% from its peak. The Russel 2000 is in a bear market, down 22.4%.<\/p>\n<p>In Japan, stocks have gotten mauled since the Bank of Japan inflicted the idea of negative deposit rates on the land three weeks ago, after Governor Haruhiko Kuroda had repeatedly assured parliament that he wasn\u2019t even considering the idea. Despite a bounce earlier this week, the Nikkei is down 24% from its recent high.<\/p>\n<p>It doesn\u2019t matter that, under the BOJ\u2019s three-tiered system, no deposits qualify yet for the special treatment. It\u2019s the idea that counts. It\u2019s all a mind-game.<\/p>\n<p>And so on Thursday, Kuroda stood before Parliament to be lambasted from all sides. According to\u00a0<a href=\"https:\/\/eresearch.fidelity.com\/eresearch\/markets_sectors\/news\/story.jhtml?storyid=201602180615DOWJONESDJONLINE000206&amp;provider=DOWJONES&amp;product=DJONLINE&amp;category=&amp;sourcePage=article&amp;gic=\">DJ Business News<\/a>, he \u201cfound himself dodging a concerted attack in Parliament from lawmakers who charged the policy was victimizing consumers and sending a message of despair.\u201d<\/p>\n<p>Opposition lawmaker Shinkun Haku needled Kuroda: \u201cCan you deny that banks will put an additional burden on average depositors\u201d by charging fees or interest on deposits? \u201cIf you can\u2019t deny it, don\u2019t. It\u2019s a yes or no.\u201d<\/p>\n<p>Kuroda dodged the jab the best he could, refusing to speculate on fees but said that \u201cthere\u2019s no chance that deposit interest rates will turn negative.\u201d<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Revolt against NIRP Breaks out, Bank of Japan \u201cBaffled\u201d Meanwhile, exports collapse at fastest rate since 2009. This would be hilarious, if it weren\u2019t so serious: Frazzled politicians, during a parliamentary session, lambasting the governor of their central bank over its new negative interest rate policy. But this is what happened in Japan. Central-bank imposed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,2854,452,534,558,1389,4254,4255],"class_list":["post-18000","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-haruhiko-kuroda","tag-japan","tag-monetary-policy","tag-negative-interest-rates","tag-nirp","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18000"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18000\/revisions"}],"predecessor-version":[{"id":18001,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18000\/revisions\/18001"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}