Japans QE is not successful either, contrary to experts opinions about Central Banks printing money for huge QEs

Les Echos published on 01/21/2015 a short article,that I translated  on: The BoJ lowered its inflation forecast, and increases that of GDP . which  I will quote (colored lettering is mine) and precede with my own comments.

The BoJ is not independent, it closely follows instructions from Prime Minister Abe Abeconomics which so far has not been successful in its 3 arrows program, not having yet dealt with the  most important one, which is implementing structural reforms, and which is increasingly requested by Japans business community, and making an error in increasing VAT in 2014 from 5 to 8%.

This shows that Japans QE were not successful, contrary to what experts have been saying, which this blog keeps steadily arguing since 3 to 4 years, having started with FEDs 4 Trillion USD over five years with mitigated results in terms of significantly decreasing total unemployment (including under employment, as big as officially published unemployment), and since 2011 with the BCE, who due to, savior Dragui has been trying to save the euro and x other matters since his appointment, deviating totally from BCEs mandate of controlling inflation and also and most important keeping strong tabs to regularly check if private banks lend to to the biggest employer in any country the SMEs, which they did and do not do sufficiently by a large margin.

Central Bankings interventions need to be radically changed, since they now govern the economies of major countries, and since  they are only bankers not pejorative in itself if they keep to what their mandates are but very dangerous if they meddle with influencing economic cycles something they should not do and cannot handle.

As shown below, the Nikkei market has fallen 0.74% in view of what the BoJ is doing. 

The Bank of Japan (BoJ) said Wednesday 01/21/2015 it lowered its inflation forecasts while extending a loan program to encourage lending by banks, the central bank hoping to silence critics saying it does not take steps to bring about consumer price increases sealed by high falling oil prices.

As expected, after a two-day meeting, the monetary policy committee of the central bank voted in favor of maintaining a program of asset purchases of 80,000 billion yen (546 billion euros) per year .

On the occasion of the quarterly review of its long-term forecast, the Institute of issuance reduced its forecast to 1.0% for the base said inflation for the year 2015-2016, against an estimate of 1.7% three months ago.

This strong downgrade is essentially due to  the result of a 60% drop in oil prices over the past six months. The price index for basic consumption includes oil products, but excludes prices of fresh food products.

But the Bank of Japan has also revised upwards its inflation projection for the 2016-2017 fiscal year. from 2.1% to 2.2%, thereby indicating that it is convinced that its inflation target of 2% will eventually be reached.

Market participants are waiting to see if the governor of the Bank of Japans Haruhiko Kuroda, at a press conference at 06.30 GMT, will reaffirm its conviction that this rate of 2% will be achieved during the fiscal year that begins April 1st.

I want to hear if Kuroda will once again say its confidence in achieving this goal during the 2015-2016 period or if  will he change his assessment, said Daiju Aoki, an economist at UBS.

If the Bank of Japan pushes his goal without relaxing its policy again, investors may be disappointed.

The program of quantitative easing by the BoJ had, against all odds, was increased by 30,000 billion yen in October 2014, the slowdown of the Japanese economy threatening to plunge the country into deflation, a phenomenon that existed over two decades.

Under the influence of an increase in the value added tax (VAT), dated April 1, 2014, the third world economy fell into recession in the third quarter of 2014.

For the 2015-2016 fiscal year, the BoJ now expects gross domestic product (GDP) to rise by 2.1% against 1.5% previously.

The fall of oil prices and its effect on consumer prices have led some market participants to anticipate short-term new easing measures by the BoJ. Investors have even sold the yen on Wednesday in anticipation of a possible surprise.

But around 5:40 GMT today, the yen advanced 0.84% against the dollar following the announcements of the BoJ, while the Tokyo Stock Exchange lost 0.74% at the end of the session.

For measurement, the BoJ has extended for one year loan programs to private banks to encourage them to give more credits. The size of one of these programs has been increased from 3,000 billion yen.

Number of members of the BoJ are reluctant to further accentuate a quantitative easing program that has already tipped the sovereign bond yields to five years in negative territory.