Update: Make That 15 Trillion; BOJ Raises Liquidity Injection To JPY12 Trillion ($146 Billion)

Tyler Durden's picture

Update: make that JPY15 trillion:

The BOJ offered a combined 15 trillion yen ($183 billion)
into the banking system on Monday in its first same-day market
operation since the Greek debt crisis in May last year, to
soothe market jitters in the wake of a devastating earthquake
and tsunami that struck northeast Japan on Friday.
The central bank's policy board will likely discuss whether
the sharp fall in Tokyo stock prices and the potential damage
from the quake to corporate profits warrant an immediate policy
response, the sources said.

We have since learned that the extra 3 trillion will be use to buy government bonds. Hello QE, my old friend.

Original post

Total reactionary panic everywhere now as the BOJ hikes the liquidity injection from 2 to 7 to 12 trillion yen. And this is likely hardly the end: "BOJ Governor Masaaki Shirakawa told reporters late yesterday he’s
ready to unleash “massive” liquidity starting this morning in Tokyo."
From BusinessWeek:

 "The Bank of Japan said it will pump a record 12 trillion yen ($146 billion) into the financial system to help stabilize the market after the nation’s biggest earthquake on record last week threatened an economic recovery.

The emergency measure represents the bank’s first same-day repurchase operations since May, when the central bank added funds to help stabilize the market after the Greek debt crisis set off a plunge in stocks worldwide. BOJ Governor Masaaki Shirakawa told reporters late yesterday he’s ready to unleash “massive” liquidity starting this morning in Tokyo.

“The Bank of Japan will provide plenty of liquidity and there are no disruptions in the interbank market,” said Toshiaki Terada, a researcher at Totan Research Co. in Tokyo. “The bank will probably add more funds if needed."

It is possible that following the latest reactor explosion this amount will be raised once more before the US night is over.  We are somewhat skeptical that throwing infinite capital at a clusterflock of black swans will do much, but are happy to be proven wrong.

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Dooud's picture

Not Really, Ben does about that every month since QE1 started!
BOJ welcome to the big boy club.

Mentaliusanything's picture

Was it Digitally inserted into the Markets or did they find it laying around on the ground. Just asking.

John McCloy's picture

Got Dollars? 

Dow-300 tomorrow on USD strength.

MarketTruth's picture

Dollars? They are just as bad as Yen and Euro as their inherent value is zero due to nothing backing them and trillions can be printed out of thin air.

Got gold / silver?

Tapeworm's picture

Might as well take down glod and sludge while they're at it.

dryam's picture

Seems like tonight will be a good guage to how strongly the PM's are manipulated.

jerry_theking_lawler's picture

break out the 8 ga double barrel widow-maker....gotta get something to take care of that flock of black swans....

Cleanclog's picture

Many freaked out (understandably) Japanese can't get to their banks or ATMs, and the cash trucks definitely can't get to the most freaked out areas, so even infinite liquidity won't make the man on the street feel secure.  BOJ can go to 21Tr yen and it won't "solve" the problem.

Hollywood's picture

Agreed.  Who is the liquidity helping?

djrichard's picture

Anybody who has a carry-trade against the Yen.  I.e. everybody.

Tapeworm's picture

Short the piss out of paper metals--- boooooyaaahhh

Charles Mackay's picture

If the remainder of the $146 billion comes tomorrow, that would be the largest two day injection of money ever by a central bank - even beating out the Fed.

Hard to believe that some of that $85 to $146 billion won't be invested in gold and silver, despite the latest slam.


Fred Hayek's picture

That's waving a red flag in front of the Bernanke Bull.

Mentaliusanything's picture

And would they be selling some bonds in the US in a short while ? What is it  -Trade day +3

This black Swan could eat Godzilla and spit out only gas.

Might I remind you that some dervivatives still inserted in the core of the financial World are more dangerous than fifty meltdowns in some far off little island that just happens to own a lot of paper IOU signed USA is good for it.

tmosley's picture

What's that, like a couple of months of POMO?

Ben is loling in his Keynesian diapers.

Poor Grogman's picture

The sheeple may soon start to question why they donate to the relief efforts.

(noble though that is)

When the Central Bank can just create the money with a few keystrokes.

Maybe relief agencies can just start sending the CB's a request for cash.

To speed up the relief effort of course!

djrichard's picture

I'm waiting for the sheeple to question why they their taxes are pledged for bank relief efforts.

On the same note, I'm assuming any risk in the 'assets' purchased by the central banks is passed through to the tax payers as well.

carbonmutant's picture

Donations amy be a little thin this year... what with current events

spanish inquisition's picture

"BOJ Governor Masaaki Shirakawa told reporters late yesterday he’s ready to unleash “massive” liquidity starting this morning in Tokyo."

"Ben, the two of us need look no more...."

"We both found what we were looking for..."

Oh regional Indian's picture

Goes to show that NUMBers don't matter anymore.

The market's are toast. Can you imagne what happens when that volume of liquidity is with-drawn? No rules, no rationailty any longer.

All that money shoule be going into the real world, helping the quake/tsunami stricken.

But in this bizzaro world we live in, markets are more important than people.

It's a farce now, of the highest order. Nuclear options, everywhere.



Bringin It's picture

More clear every day, everywhere ORI.

But in this bizzaro world we live in, markets are more important than people.

zaphod's picture

What is this word "withdrawn"? I've never seen it before in any textbook I've written.

- Thanks, BB

Mentaliusanything's picture

ORI would you mind if I put that on a Tee shirt, walk around and make some people's eyes open.

One line that captures the very essence of futility - completely

And today the sells for Tokyo Electric were 250 to 1 buyer (and that was just to make market)

So they did not allow trade in that or many other heavyweights.

The Shit has not yet hit this Fan.

The US markets will be digitally inserted tomorrow but it will be just self masturbation.

pleseus's picture

Holy Sh#t. Fiat Tsunami.  And why should you sell your gold and silver?

savagegoose's picture

yeah imust say , donate money, WTF for i dont have a printing press.

sorry but i just got printed out of my charity for all time to come.

Boilermaker's picture

A gabillion jillion...

Seriously, what the fuck difference does it make?  It's literally ridiculous at this point.

Yen Cross's picture

Grow up! You are a little toy that shoots plastic missiles!

Hollywood's picture

Who decided that saving "stock markets" around the world is number one priority?

Oh regional Indian's picture

Exactly. Who in the heck decided that? 

Shows, in clear and harsh light, wehre we are though, eh?



pitz's picture

Hyperinflation coming?

tmosley's picture

That seems likely.  It is certain to be blamed on the disaster, rather than the 20+ years of capital depletion that has been perpetrated upon the people by their government.

dark pools of soros's picture

is the clusterflock clusterfucking??


get ready for the big one..   the BIG DIP THAT WILL BE BOUGHT

Poor Grogman's picture

I meant to say "I am ready"

but I junked you instead

My bad....

Id fight Gandhi's picture

They're doing all this prior to afternoon trading.

Maybe theyll get the market green by close. Keep upping the free money.

Sheriff Douchenik from AZ's picture

Maybe my favorite Japanese Mixed Martial Arts organizations: Dream and Sengoku won't be going bankrupt after all. Gotta think some of that fun money finds it's way into bailing out unprofitable but fun MMA organizations?


MachoMan's picture

I'm happy that the circus formerly known as pride was put out of its misery...  do dream and sengoku give yellow cards for wanderlei from the bottom?  If so, hopefully they go out also...

Tail Dogging The Wag's picture

BTFD, get those bars n rounds in PHYSICAL.

Sheriff Douchenik from AZ's picture

Does anyone think the BOJ will drop rates to -5% to "help out"?

Tail Dogging The Wag's picture

Gives me such satisfaction to dump my US Dollars and get real physical.

PulauHantu29's picture

So this is what a "Free Fall" looks like.

Any predictions for the Dow on Monday?

Yen Cross's picture

I think Kampo will spend the annual repatriation on rebuilding the infrastructure/housing of Japan. How those Yen are expatriated is anyone's guess.

Tail Dogging The Wag's picture

"Deficits don't matter" — Dick Cheney

Of course they don't, not when you've got the whole world hooked on US Dollars and you have infinite ink for your printers. Reminds me of the Opium Wars. Hook em, and abuse em, poor sods!

Id fight Gandhi's picture

Nikkei at lows after reopening Down 5.7%

rubearish10's picture

New injection amount by JCB,,,, $183bln.

zebra's picture

just a type on the keyborad, no big deal. move along.

zebra's picture

just a type on the keyborad, no big deal. move along.

RobotTrader's picture

Metals of every stripe getting sold hard on this news.