Japan may be bailing out Europe in secret, economist Mosler says

Section:

9:13p ET Monday, February 27, 2012

Dear Friend of GATA and Gold:

If GATA has proved anything, apart from the rigging of the gold market by Western central banks for almost 80 years, it is that those central banks often lie and conceal, that even when they tell the truth it's far from the whole truth, and that their surreptitious manipulations conducted through intermediaries facilitates insider trading. So it's delightful when even a respected liberal economist like Warren Mosler implicitly comes to a similar conclusion, as he did today with his speculation that Japan is underwriting the bailout of Europe.

Mosler writes: "I'm now thinking it may have been the Bank of Japan giving the nod to its member banks to buy euro-member debt denominated in euro and to keep the foreign exchange risk on their books, with the assurance that government policy would keep the yen weak and guarantee the banks an FX profit."

Just three weeks ago GATA noted the disclosure by Dow Jones Newswires that the Bank of Japan was intervening in the currency market surreptitiously, through intermediary commercial banks, to devalue the yen:

http://www.gata.org/node/11015

That fits very well with Mosler's speculation, which can be found at his blog here:

http://moslereconomics.com/2012/02/27/ltro-birdie-telling-me-maybe-the-b...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



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