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Gold Goes Berserk: Japan Unveils Mother Of All Quantitative Easing

The Bank of Japan just put Bernanke to shame with its latest announcement regarding quantitative easing. The effect on the yen was muted, but check this out, via the bank's statement (via FT Alphaville) As assets to be purchased, the Bank will examine long-term government bonds, treasury discount bills, commercial paper (CP), asset-backed CP (ABCP), corporate bonds, exchange-traded funds (ETFs), and Japan real estate investment trusts (J-REITs). As a fund provisioning method other than the purchase of assets, the Bank will utilize the fixed-rate funds-supplying operation against pooled collateral. Wow. They're getting desperate and throwing the kitchen sink in there with potential REIT and ETF purchases. This is almost like James Altucher's dream of the US Fed buying stock futures. Not surprisingly, gold is going berserk on the news of this new level of QE.

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