It has finally happened. The Bank of Japan, Japan’s central bank, has begun purchasing stocks held by the nation’s commercial banks. The BoJ creates digital money to buy the shares. The shares now in the BoJ’s possession serve as legal reserves for the expansion of Japan’s money supply. This has begun to move the monetary system from credit money to pure fiat money. The ability of the central bank to expand the money supply will no longer be limited by people’s willingness to borrow. Now the only limit will be the willingness of sellers to sell. In a time of … Continue reading Monetary Depreciation