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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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Sun, 03/13/2011 - 22:49 | 1048391 Twindrives
Twindrives's picture

Ben's jealous.

Mon, 03/14/2011 - 01:36 | 1049179 Dooud
Dooud's picture

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

Mon, 03/14/2011 - 06:37 | 1049481 Mentaliusanything
Mentaliusanything's picture

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

Sun, 03/13/2011 - 22:51 | 1048395 John McCloy
John McCloy's picture

Got Dollars? 

Dow-300 tomorrow on USD strength.

Mon, 03/14/2011 - 05:35 | 1049454 MarketTruth
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?

Sun, 03/13/2011 - 22:50 | 1048399 Tapeworm
Tapeworm's picture

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

Sun, 03/13/2011 - 22:51 | 1048402 dryam
dryam's picture

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

Sun, 03/13/2011 - 22:52 | 1048405 jerry_theking_lawler
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....

Sun, 03/13/2011 - 22:53 | 1048417 Cleanclog
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.

Sun, 03/13/2011 - 22:54 | 1048430 Hollywood
Hollywood's picture

Agreed.  Who is the liquidity helping?

Sun, 03/13/2011 - 23:08 | 1048505 djrichard
djrichard's picture

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

Sun, 03/13/2011 - 22:52 | 1048419 Tapeworm
Tapeworm's picture

Short the piss out of paper metals--- boooooyaaahhh

Sun, 03/13/2011 - 22:54 | 1048433 Charles Mackay
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.


Sun, 03/13/2011 - 23:23 | 1048600 Fred Hayek
Fred Hayek's picture

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

Mon, 03/14/2011 - 06:46 | 1049483 Mentaliusanything
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.

Sun, 03/13/2011 - 22:58 | 1048437 tmosley
tmosley's picture

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

Ben is loling in his Keynesian diapers.

Sun, 03/13/2011 - 22:57 | 1048446 Poor Grogman
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!

Sun, 03/13/2011 - 23:06 | 1048487 djrichard
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.

Mon, 03/14/2011 - 00:27 | 1048920 carbonmutant
carbonmutant's picture

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

Sun, 03/13/2011 - 22:57 | 1048448 spanish inquisition
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..."

Sun, 03/13/2011 - 23:00 | 1048451 Oh regional Indian
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.


Mon, 03/14/2011 - 00:18 | 1048896 Bringin It
Bringin It's picture

More clear every day, everywhere ORI.

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

Mon, 03/14/2011 - 04:37 | 1049413 zaphod
zaphod's picture

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

- Thanks, BB

Mon, 03/14/2011 - 07:00 | 1049490 Mentaliusanything
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.

Sun, 03/13/2011 - 23:02 | 1048470 pleseus
pleseus's picture

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

Sun, 03/13/2011 - 23:05 | 1048481 jerry_theking_lawler
jerry_theking_lawler's picture

i'm not. BTFD!

Sun, 03/13/2011 - 23:06 | 1048496 savagegoose
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.

Sun, 03/13/2011 - 23:07 | 1048504 Boilermaker
Boilermaker's picture

A gabillion jillion...

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

Sun, 03/13/2011 - 23:24 | 1048604 Yen Cross
Yen Cross's picture

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

Sun, 03/13/2011 - 23:08 | 1048515 Hollywood
Hollywood's picture

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

Sun, 03/13/2011 - 23:27 | 1048621 Oh regional Indian
Oh regional Indian's picture

Exactly. Who in the heck decided that? 

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



Sun, 03/13/2011 - 23:09 | 1048519 pitz
pitz's picture

Hyperinflation coming?

Sun, 03/13/2011 - 23:15 | 1048551 tmosley
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.

Mon, 03/14/2011 - 02:59 | 1049320 Yen Cross
Yen Cross's picture

Stagflation coming

Sun, 03/13/2011 - 23:13 | 1048544 dark pools of soros
dark pools of soros's picture

is the clusterflock clusterfucking??


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

Sun, 03/13/2011 - 23:21 | 1048592 Poor Grogman
Poor Grogman's picture

I meant to say "I am ready"

but I junked you instead

My bad....

Sun, 03/13/2011 - 23:21 | 1048591 Id fight Gandhi
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.

Sun, 03/13/2011 - 23:23 | 1048597 Sheriff Douchen...
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?


Mon, 03/14/2011 - 09:47 | 1049933 MachoMan
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...

Sun, 03/13/2011 - 23:24 | 1048602 Tail Dogging The Wag
Tail Dogging The Wag's picture

BTFD, get those bars n rounds in PHYSICAL.

Sun, 03/13/2011 - 23:24 | 1048605 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

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

Sun, 03/13/2011 - 23:26 | 1048629 Tail Dogging The Wag
Tail Dogging The Wag's picture

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

Sun, 03/13/2011 - 23:28 | 1048639 PulauHantu29
PulauHantu29's picture

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

Any predictions for the Dow on Monday?

Sun, 03/13/2011 - 23:32 | 1048654 Yen Cross
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.

Sun, 03/13/2011 - 23:31 | 1048662 Tail Dogging The Wag
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!

Sun, 03/13/2011 - 23:35 | 1048679 Id fight Gandhi
Id fight Gandhi's picture

Nikkei at lows after reopening Down 5.7%

Sun, 03/13/2011 - 23:35 | 1048690 rubearish10
rubearish10's picture

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

Sun, 03/13/2011 - 23:40 | 1048717 zebra
zebra's picture

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

Sun, 03/13/2011 - 23:41 | 1048722 zebra
zebra's picture

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

Sun, 03/13/2011 - 23:45 | 1048744 RobotTrader
RobotTrader's picture

Metals of every stripe getting sold hard on this news.

Mon, 03/14/2011 - 01:28 | 1049151 Muir
Muir's picture

too complicated for many they'll think conspiracy.

Or why at 6:00 pm EST shoting the YEN was free money.

And is still a good short.

Sun, 03/13/2011 - 23:46 | 1048749 Hicham
Hicham's picture

these guys fucking need to start thinking about the possibility that after the largest earthquake ever recorded in Japan, tsunamis, and explosions/near meltdown at multiple nuclear plants perhaps the markets should go DOWN, and they DO NOT need liquidity.

Mon, 03/14/2011 - 09:50 | 1049942 MachoMan
MachoMan's picture

I think they would be willing to agree with the assertion that they should have gone down for decades...  but, that has nothing to do with desiring to keep as close as possible to the status quo going for as long as possible...  aliens could show up and it wouldn't matter...

Sun, 03/13/2011 - 23:48 | 1048762 all_in_now
all_in_now's picture

"throwing infinite capital" did you just called multiple electrons pulled out of someone's ass a form of capital?

Sun, 03/13/2011 - 23:55 | 1048793 Jim Billy Bob J...
Jim Billy Bob James IV's picture

Throwing money at every problem that comes along?

Mon, 03/14/2011 - 00:05 | 1048839 99er
99er's picture


Intervention is a waste of money; Dollar back in the up channel.

Mon, 03/14/2011 - 00:09 | 1048862 bankruptcylawyer
bankruptcylawyer's picture

i think they are trying to bribe mother earth not to deliver any aftershocks. they forgot mother earth uses giga-joules of energy for currency, not fiat.

Mon, 03/14/2011 - 00:13 | 1048863 gwar5
gwar5's picture

"Clusterflock" -- that's good.

Anybody seen the Anonymous BAC leak yet? Where is it?

Mon, 03/14/2011 - 00:11 | 1048867 buzzsaw99
buzzsaw99's picture

How do you say Frosty Sack in Japanese?

Mon, 03/14/2011 - 00:41 | 1048909 walküre
walküre's picture

debt at 200% GDP

 ..earthquake to knock out large parts of existing power supply for years ..

might as well pull a KAMIKAZE CAPITALIZATION with a TSUNAMI of CASH


Mon, 03/14/2011 - 00:27 | 1048921 glenlloyd
glenlloyd's picture

Maybe that volcano is going to start spewing yen into the sky....

Mon, 03/14/2011 - 00:27 | 1048926 GtownSLV
GtownSLV's picture

How much of that $168 billion is US Tresasuries that Uncle Ben bought back from the Japs a few hours ago using a shadow account. The Jap's already have huge debt, the only thing they can hock that's worth anything is there $800+ billion in US paper.


Also, what about all these insurance companies that will be forced to liquidate their paper. Raw materials and food are going to skyrocket. Hyperinflation is here, it just may take a few more days to materialize. 

Mon, 03/14/2011 - 00:43 | 1048984 walküre
walküre's picture

well, one thing is certain.

Ben and Timmay have lost another very important customer.

The Japanese will not be able to buy US debt for years.

Mon, 03/14/2011 - 00:53 | 1049030 QQQBall
QQQBall's picture

Knowing the US Fed, they probably collateralized it against Sendai coastal property.

Mon, 03/14/2011 - 00:47 | 1049001 suteibu
suteibu's picture

Shares of Tokyo Electric Power Co. (9501) and East Japan Railway Co. (9020) remained ask-only throughout Monday morning, as investors increasingly avoid risk in the wake of Friday's massive earthquake in northeastern Japan.


Mon, 03/14/2011 - 00:50 | 1049021 QQQBall
QQQBall's picture


Mon, 03/14/2011 - 00:54 | 1049038 dark pools of soros
dark pools of soros's picture

$183 Billion now... did the dollar drop that fast???


The Bank of Japan poured a record 15 trillion yen ($183 billion) into the world’s third-biggest economy today as the strongest earthquake in the nation’s history triggered a plunge in stocks and surge in credit risk.

Mon, 03/14/2011 - 01:18 | 1049119 RmcAZ
RmcAZ's picture

How about $18 trillion ($220 billion)?

Why don't they just make it an even $1,000 quadrillion so we can move on with things?

Mon, 03/14/2011 - 01:50 | 1049203 obelisks
obelisks's picture

How in the world will they possibly pay all this back ?

Mon, 03/14/2011 - 02:17 | 1049259 dark pools of soros
dark pools of soros's picture

Japan is pretty low compared to GDP...  pehaps this was staged to get them back with the herd?  j/k


Mon, 03/14/2011 - 01:21 | 1049132 MrPalladium
MrPalladium's picture

It looks to me like the cleanup and rebuild is going to move forward the date on which JGBs blow up.

Mon, 03/14/2011 - 01:58 | 1049217 anvILL
anvILL's picture

Uh...I think we have another 5 trillion according to the Japanese Nikkei release just 7 minutes ago.

Mon, 03/14/2011 - 02:04 | 1049227 dwdollar
dwdollar's picture

Breaking News on CNBC:

BOJ Announces Further Easing Steps; To Increase Asset Purchase Fund to 40 Trillion Yen

Mon, 03/14/2011 - 02:10 | 1049240 RmcAZ
RmcAZ's picture

I'll quote myself from a few posts ago...

Why don't they just make it an even $1,000 quadrillion so we can move on with things?

Mon, 03/14/2011 - 02:40 | 1049288 Yen Cross
Yen Cross's picture

Keep talking ladies. I hear your voices! P.S. One Quadrillion is ten hundred trillion. Just getting factual. Lets stick with billions for the time being.

Mon, 03/14/2011 - 02:11 | 1049246 anvILL
Mon, 03/14/2011 - 02:15 | 1049258 Lapri
Lapri's picture

BOJ just added 5 trillion yen to its Asset Purchase Program, making the total at 40 trillion yen ($486 billion)

Mon, 03/14/2011 - 02:20 | 1049262 Bansters-in-my-...
Bansters-in-my- feces's picture

15 Trili-Yen.....
Thats a whole lotta Yen.

Mon, 03/14/2011 - 02:27 | 1049272 bankruptcylawyer
bankruptcylawyer's picture

don't let  a good tragedy/crisis go to waste.

Mon, 03/14/2011 - 03:27 | 1049356 Catullus
Catullus's picture

Not letting US stocks sell off in face of this is beyond preposterous. Just let it happen, Sack Frost. Go to your bosses and say "this is the perfect opportunity to let off some stream. We'll hold the line on treasuries and bonds, but let equities liquidate to fund the carry unwind. We can take the hit. It'll cool inflation fears. Buy us some more time. Besides, it'll only last 3 months and we can blame the next QE on slowing global demand for US exports."

Not inflating is the new tightening.

Mon, 03/14/2011 - 03:39 | 1049368 10kby2k
10kby2k's picture

Now disasters are ignored by our market.

Mon, 03/14/2011 - 03:49 | 1049375 10kby2k
10kby2k's picture

When cash and short term money has extreme negative value....people make irrational purchases to avoid that loss.  If the shit hits the fan, you better have something physical, because ownership of paper that entitles you to commodity/PM's might become worthless. The line in the sand is whether you get physical or not.

Mon, 03/14/2011 - 04:25 | 1049404 Mike2756
Mike2756's picture

At what point is it not near enough?

Mon, 03/14/2011 - 05:23 | 1049447 theprofromdover
theprofromdover's picture

In another universe, the central Bank would be setting aside money to help the victims......

In this mark-to-mystery world where the drop in the market is a temporary man-made wobble to let speculators make money -not to derail the economy- this intervention is a complete joke

Thu, 03/17/2011 - 15:03 | 1067677 Bertie Wooster
Bertie Wooster's picture

How can I tell when the update occured?

I'm trying to do research on the BoJ, and I can't figure out when the pumping was raised from 12T to 17T.  I see the original post was 22:48, and then I see it was updated, but there's no time stamp on ZH for the update, and the BoJ press release doesn't have a time stamp on it (unlike the 22:48 press release when it was bumped from 7T to 12T).

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