Just as expected Bank of Japan extended its money-print program in an effort to save from defaulting the Japan government, indebted to almost 230% of GDP. I don't understand why some media called this decision "unexpected" as it was inevitable. Low interest rates and large bond-purchases by Central banks are the instrument of preventing governments from bankrupt in short term and to guarantee the inflationary-repayment of debts in long term. Printing-money programs will continue everywhere at least until the inflation increases the nominal GDP to levels where debt/GDP ratio is manageable. Out of government statistics the inflation do happen in Japan. If we look at the prices of gold, oil (energy) and food, measured in Yens, we will see something much different than the information in official inflation statistics.

Dobri
April 27th 2012