Liquidity boost

Japan Readies ‘Massive’ Liquidity as BOJ Gauges Risk to Post-Quake Economy

By Lily Nonomiya and Mayumi Otsuma - Mar 13, 2011 12:00 PM GMT-0300

The Bank of Japan may today inject more short-term cash into the banking system after the nation’s most powerful earthquake on record, while keeping its asset- purchase plans unchanged as officials gauge the longer-term effect on the world’s third-largest economy.
Governor Masaaki Shirakawa told reporters late yesterday he’s ready to unleash “massive” liquidity starting this morning in Tokyo, as the BOJ seeks to assure financial stability.
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Comment: Once the principle is broken, there is always a reason to be found to boost liquidity and augment government spending. If it isn't an earthquake, it is 9/11, and if it is not 9/11, it is 2YK or midterm election or whatever. Did anyone note that there are no "Principles of Economics" textbooks anymore? Yes, Virginia, there are no principles anymore in this trade.