Foolish inconsistency is no bargain, either.

[No Elephants]

By Marc Jones

LONDON | Tue Jan 22, 2013 3:34am EST

(Reuters) - World shares hit a new 20-month high on Tuesday after Japan's central bank promised to pump unlimited stimulus into the country's economy to fight the threat of deflation and generate growth.

The Bank of Japan, which has been under intense political pressure to overcome deflation, hiked its inflation target to 2 percent and said that from 2014 it would adopt an open-ended commitment to buy assets.

The move surprised markets, which had expected another incremental increase in its 101 trillion yen ($1.12 trillion) asset-buying and lending program, though the delay until the easing measures kick in dulled the impact and saw the yen edge higher against the dollar.


<snip>

Equity markets, particularly in Japan, have risen strongly in the run up to Tuesday's meeting, and the confirmation of the plans was enough to lift the MSCI world index .MIWD00000PUS 0.15 percent to a fresh 20-month high of 352.54.


<snip>
(Reporting by Marc Jones; Editing by Will Waterman)

When the U.S. pumps a bit of stimulus into the economy, or even fails to cut spending on "entitlements," the markets punish the U.S. But, when Japan decides on unlimited stimulus, the markets leap for joy.

Go figure.

[Enthusiast]

1. I hope their actions have a positive effect............nt