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Bank of Japan Posts Whopping ¥233 Billion Loss As Its Soaring Balance Sheet Hits Record ¥156 Trillion

Tyler Durden's picture





 

But... but... a central bank can never lose money. Bzzzz, wrong. As it just so happens, the world's most tragicomic farce of a central bank, and one which is about to officially lost its (faux) "independence" and become a branch of the Japanese government if the up and coming PM Abe has his way, the Bank of Japan, just reported that in the quarter ended September 30, the Japanese central bank reported an operating loss of ¥183.4 billion, and a net loss of ¥232.9 billion. As a comparison, the loss in the same period in 2011 was "only" 91 billion. This is a harbinger of the total collapse that is the utterly meaningless capital tranche of all central banks will go through before the terminal phase of the global Keynesian experiment is finally completed.  But in the meantime, enjoy this chart of the Bank of Japan's balance sheet returning back to a record ¥156... trillion.

And for those who enjoy having fun with google translate, here is the BOJ press release. Red - amusement follows:

128th fiscal year financial statements for the first six months (FY 2012)

Assets and Liabilities

Looking at the situation of assets and liabilities at the end of the first half of fiscal 2012, compared with the end of the previous fiscal year increased by 12 trillion yen 2,317 billion (+8.9%), total assets are 149 trillion yen 9,208 billion, mainly government bonds was. In addition, compared with the end of the previous fiscal year increased by 12 trillion yen 3,019 billion (+9.1%), total debt was 4,410 billion to ¥ 14.7 trillion center (current account) deposits.

And is as follows: take a closer look at these changes in the assets and liabilities of the Bank of Japan. First, looking at the part of the asset, from the fact that government bonds, etc., etc. The amount of the purchase exceeds the amount of redemption, and 102 trillion yen 8,593 billion, more than 18 trillion yen 4,922 billion of the previous fiscal year end (Tasu21.9%). On the other hand, due to a decrease in funding due to funds-supplying operations against pooled collateral, and 34 trillion yen 4,435 billion, less than 8 trillion yen 4,959 billion the prior year end loans, (? 19.8%). The balance of assets purchased by the Fund "such as asset purchases", to ¥ 61 trillion 7,729 billion.

Then, looking at the part of the debt, primarily due to funding through the Fund "such as asset purchases", and ¥ 43 trillion 9,683 billion, more than 9 trillion yen 3,278 billion end of the prior year current account, (+26. 9%). During this time, the 80 trillion yen 9,287 billion, and more than 2 trillion yen 45.8 billion the prior year end balance of ticket issuance, the Bank of Japan (+2.6%).

Profit and loss situation

As for the status of the profit and loss for the first six months of fiscal 2012, ordinary income was a loss of ¥ ? 1,833 billion (ordinary loss). This is intended to primarily driven and that the income related foreign exchange has become more than loss significantly due to the strong yen, that income investment (equity trust property) became super loss money held in trust due to the impairment of shares held is.

Like that it has made trading losses reserve fund of index-linked exchange-traded fund, special income, to ¥ ? 468 billion.

As a result, loss of ¥ ? 2,329 one hundred million surplus before income taxes, surplus income after deducting next (Fri loss before income taxes), corporate income tax, the business tax and residence tax yen ? 2,302 million, income ( I became a gold) loss.

 


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Wed, 11/28/2012 - 13:40 | Link to Comment EscapeKey
EscapeKey's picture

I guess if control of the BOJ truly is taken away from the BIS, we can expect to see Japan go first, and very soon at that.

Wed, 11/28/2012 - 13:47 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

To hell with Godzilla, this looks more like Tetsuo at the end of "Akira".

Wed, 11/28/2012 - 13:53 | Link to Comment fourchan
fourchan's picture

thats what they get by fighting the feds devaluation.

Wed, 11/28/2012 - 13:57 | Link to Comment MiguelitoRaton
MiguelitoRaton's picture

tick, tick, tick....boom

Wed, 11/28/2012 - 14:11 | Link to Comment tsx500
tsx500's picture

Kyle Bass sees this chart & gets a chub the size of the Empire State Building

Wed, 11/28/2012 - 14:13 | Link to Comment economics9698
economics9698's picture

Our Fed is leveraged 52-1.  If the interest rate increases 44 basis points they start losing money.  52-1, I think it’s a safe bet they go under and become a printing press in a short amount of time.

My blog.   http://www.floridapoliticalpress.com/2012/11/28/the-fiscal-cliff-was-199...

Wed, 11/28/2012 - 14:11 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

15 years of deflation has allowed Japan to keep interest rate near zero.

New debt services old debt at no extra cost.  

This can go on indefinatley.

If/when prices start rising, they are screwed.

 

Wed, 11/28/2012 - 14:47 | Link to Comment derek_vineyard
derek_vineyard's picture

their debt service cost has been in a trading range for a decade---30 year about 1.00% in 2003 to the just below 2.00% today----so without lowering rates (theres almost nowhere to go lower) they are already deeply fucked-----usa is closing in on japans 30 year bonds trading range of 1.00-2.75%

Wed, 11/28/2012 - 13:48 | Link to Comment Ruffcut
Ruffcut's picture

They won the inverse powerball.

Wed, 11/28/2012 - 13:54 | Link to Comment TruthInSunshine
TruthInSunshine's picture

This is the Bank of Japan. If you're squeemish, don't click (it's a medical type thing):

 

BOJ Lancing Begins, Bitchez: The Lance, Purge & OozeTsunami, LULZ

 

The Fed and ECB are going to be EPICALLY ripe when they need to be lanced, as well. Respositories and pustules of sepsis and toxins, unite!

Wed, 11/28/2012 - 13:55 | Link to Comment Sam Clemons
Sam Clemons's picture

Can unauditable, uncontrollable central banks actually go "bankrupt?"  Don't they just create more "money" if they lose "money" on prior "investments?"

This isn't a rhetorical question.  I actually would like to know whether or not its possible.  It seems the only thing about them that can go "bankrupt" is if trust in their funny money fades, their charter is removed and the supporting cartel is dismantled. 

Wed, 11/28/2012 - 13:59 | Link to Comment TruthInSunshine
TruthInSunshine's picture

C'mon, it all depends on your definition of "money."

This isn't a define "is" swipe of hand. It's actually the key to truly understanding the Ponzi of a foundation our Modern Money Mechanics economy is built upon.

Wed, 11/28/2012 - 14:15 | Link to Comment economics9698
economics9698's picture

Gross, fuck.

Wed, 11/28/2012 - 18:04 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I plus 1'd you to offset the negs b/c you're clearly an abscess newb and just popped your cherry.

Not that we shouldn't wear our negs as scarlet letters.

Wed, 11/28/2012 - 13:57 | Link to Comment Spastica Rex
Spastica Rex's picture

Right - the grift continues until the mark gets wise to the con, or he runs out of dough.

Wed, 11/28/2012 - 14:00 | Link to Comment EscapeKey
EscapeKey's picture

It can carry on longer, if the mark has a gun to his head.

Wed, 11/28/2012 - 17:27 | Link to Comment brunoaa
brunoaa's picture

CB don't go bankrupt, but at one point people lose confidence in the currency. This generates an exchange rate crisis which can turn into hyperinflation. To avoid that, a currency control is put in place. The stage is then set for raging inflation as everybody runs for real assets for protection .... and the central bank has to raise the interest rate sky high to avoid that.

Trust a south american (one that one....) I was a CFO when Brazil experienced an inflation of 70% per month....(Feb 1990) 

Wed, 11/28/2012 - 13:56 | Link to Comment iDealMeat
iDealMeat's picture

eeeeeeeeeeeeeeehhhhhhhhhhhhh.....   naaaaaaaaaaaaaaaasty.....   effing throw up type nasty..

Wed, 11/28/2012 - 15:30 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I sincerely find watching that cathartic, but then again, I wanted to be a surgeon from the age of 6.

I'd like to do that to the Fed, ECB & BOE (I have a compulsive desire to slice the toxic entities open wide, pus flying through the air, abscess drainage squirting everywhere, and just stick a shunt drain tube in those open, septic wounds), but I'd need to don a proper and full Hazmat Level A (or prEN 943 part 1 by EU standards) suit after scrubbing.

*No more "ewww, gross" comments. I put a caveat warning in there for a reason. Man up, or pretend it's twinky filling.

Wed, 11/28/2012 - 14:00 | Link to Comment vast-dom
vast-dom's picture

everyone's such an alarmist these days! it's only BACK to the 2005 levels. Let's not got our panties in a bunch until Abe brings that total to ¥360T, okay?

Wed, 11/28/2012 - 13:43 | Link to Comment blindman
Wed, 11/28/2012 - 13:43 | Link to Comment Dumpster Fire
Dumpster Fire's picture

How does a CB lose money? 

Wed, 11/28/2012 - 13:51 | Link to Comment buzzsaw99
buzzsaw99's picture

zirp + stocks + fx

Wed, 11/28/2012 - 13:56 | Link to Comment Toolshed
Toolshed's picture

zirp + stocks + fx / stupid

fixed it for you

 

Wed, 11/28/2012 - 14:02 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Think about the reality of the Fed's balance sheet, extrapolate recent (4 years especially) actions that would impact asset and lie-ability sides and then ask yourself that question again.

Perhaps a CB's job IS to "lose" money. 

Remember the stuttering answers to Senate hearing questions by the Beard and his team regarding TARP etc.?

Smoke, mirrors and dark pools.

ori

Wed, 11/28/2012 - 15:05 | Link to Comment blindman
blindman's picture

here is what the dork said ...
The Dork of Cork. | November 28, 2012 at 6:01 pm |
http://archive.org/details/AV_422-S_and_L_UPDATE-PART_I
.
at mkfwr.

Wed, 11/28/2012 - 13:43 | Link to Comment PrintingPress
PrintingPress's picture

Printing paper is so much fun! 

Wed, 11/28/2012 - 13:44 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

156 Trillion ... zzzzzz ... wake me when were talking about the big Q as in Quadrillion.

9,12,15 0's ... whatever its all good.

 

Wed, 11/28/2012 - 13:45 | Link to Comment pragmatic hobo
pragmatic hobo's picture

... and the yen still won't go down.

Wed, 11/28/2012 - 13:52 | Link to Comment buzzsaw99
buzzsaw99's picture

chicken - egg

Wed, 11/28/2012 - 13:47 | Link to Comment SheepDog-One
SheepDog-One's picture

Wow! I wasn't expecting such great newses all at once? Maybe we can get Boehner and Obomber to come out and scratch each others balls on TV again ad really get some equity action goin!

Wed, 11/28/2012 - 13:48 | Link to Comment LongSoupLine
LongSoupLine's picture

everything's now fucking bullish.

 

Fuck you all central bankers.  You fucking fucks, fuck off and fucking die.

Wed, 11/28/2012 - 13:48 | Link to Comment Bob Sacamano
Bob Sacamano's picture

Central banks have no need for the concept of "loss" or "equity."    They print money out of thin air for such.  There is no need for them to worry about that at all.  Non-story.

Wed, 11/28/2012 - 13:48 | Link to Comment SheepDog-One
SheepDog-One's picture

No worries! It's all contained to sub-Japan! 

We GOT this shit! Buy buy buy!

Wed, 11/28/2012 - 13:50 | Link to Comment mjk0259
mjk0259's picture

That's less than two billion dollars. Not significant.

Wed, 11/28/2012 - 13:51 | Link to Comment EyesWise Shut
EyesWise Shut's picture

Swiss National Bank just confirmed holding 12% of currency reserves in stocks!

Wed, 11/28/2012 - 13:52 | Link to Comment semperfi
semperfi's picture

I will simply make a $100Trillion donation to them and solve all their problems - got a fresh crisp $100Trillion Zim bill hanging on my office wall (got it for only $5 US).  Just stick it in an envelope, mail it to BOJ, done.

Wed, 11/28/2012 - 13:54 | Link to Comment fourchan
fourchan's picture

lol no shit! no difference.

Wed, 11/28/2012 - 16:21 | Link to Comment Kobe Beef
Kobe Beef's picture

I got two 100 Trillions for $2.50. Gideon Gono must be inflating again. And here I was saving it for my retirement.

Wed, 11/28/2012 - 13:51 | Link to Comment rsi1
rsi1's picture

rounding error? lol who cares

Wed, 11/28/2012 - 13:53 | Link to Comment buzzsaw99
buzzsaw99's picture

lulz, yeah, they aren't worried about running out of yen

Wed, 11/28/2012 - 13:52 | Link to Comment ItsDanger
ItsDanger's picture

Is it really a loss if you can print it back?

Wed, 11/28/2012 - 13:53 | Link to Comment Offthebeach
Offthebeach's picture

No problem. You're just seeing "investment" cost from the coming profits on Japanese world beating Hello Kitty Adult Diaper technology.

Old people stuff is the growth industry of the future! Coupled with Fedgov Obamacare, it will make the Defense Iron Triangle look like a lemonade stand.

All your elderly Simulac with vodka chaser smeary poops are belong to us.

Wed, 11/28/2012 - 15:32 | Link to Comment semperfi
semperfi's picture

KenyanThugCare (aka, ObamaCare) will solve the adult diaper problem - if you are deemed "too old to repair" you will not get a needed procedure, and you will have to fork over the cash yourself for the triple bypass you need which means going to Mexico or somewhere affordable - good luck!  Solves the old people problems of the govt, like medicare, soc security, etc.  Done! Solved! 

Wed, 11/28/2012 - 13:54 | Link to Comment philosophers bone
philosophers bone's picture

What are the numbers if marked to market?

Wed, 11/28/2012 - 13:56 | Link to Comment hairball48
hairball48's picture

Looks like Kyle Bass was correct about Japan and he'll make another fortune.

Wed, 11/28/2012 - 14:08 | Link to Comment Glass Seagull
Glass Seagull's picture

Kyle is correct, but people underestimate how long these sovereign fascades can be maintained.

Japan - been can-punting for almost 3 decades now

UK - been can-punting for half a century, +/-

 

Grab a Snickers.

 

 

Wed, 11/28/2012 - 16:05 | Link to Comment Tinky
Tinky's picture

"been can-punting for almost 3 decades now"

The problem for Japan is that this current juncture in history bears no resemblance to those previous three decades. I wouldn't bet against Bass, nor even grab a frozen Snickers, for that matter.

Wed, 11/28/2012 - 13:58 | Link to Comment ebworthen
ebworthen's picture

And CNBC was running a story today that the NIKKEI may be the "hot" new opportunity in equity investing.

ROFLMAO!

Wed, 11/28/2012 - 13:59 | Link to Comment SheepDog-One
SheepDog-One's picture

I'm just surprised that CNBC doesn't write it as 'HAWT'.

Wed, 11/28/2012 - 14:13 | Link to Comment Poetic injustice
Poetic injustice's picture

CNBC is right, that is great opportunity to find some bagholders.

Wed, 11/28/2012 - 13:58 | Link to Comment doomandbloom
doomandbloom's picture

forward, m'fkers

Wed, 11/28/2012 - 13:58 | Link to Comment fonzannoon
fonzannoon's picture

the short squeezes will continue until the morale improves

Wed, 11/28/2012 - 14:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Big deal, the 14 millionth 'short squeeze' to nowhere. 

Wed, 11/28/2012 - 14:01 | Link to Comment hannah
hannah's picture

isnt 233bil yen worth about $2bil usd....? our banks lose that every day.....

Wed, 11/28/2012 - 14:04 | Link to Comment Full Faith and ...
Full Faith and Credit's picture

Could someone tell me how the Yen strengthens to the USD when the BoJ releases this blackhole of a balance sheet? 

Wed, 11/28/2012 - 14:32 | Link to Comment Bam_Man
Bam_Man's picture

It was either "better than expected" or "not as bad as some feared". Take your pick.

Wed, 11/28/2012 - 14:07 | Link to Comment Debeachesand Je...
Debeachesand Jerseyshores's picture

Bank of Japan will be renamed Bankrupted Bank of Japan.

Wed, 11/28/2012 - 14:16 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

And no it doesn't mean 233 billion yen were destroyed.  That 233 billion yen is still out there in the money supply.

It just means there's less value on the asset side, which should devalue the yen, but it won't, because (as I keep telling Tyler) it ain't tied to the asset side, not when it's an unbacked currency.

And come on, it's 0.14%, not even 1%, nowhere near "whopping".

Wed, 11/28/2012 - 14:29 | Link to Comment Bam_Man
Bam_Man's picture

A Central Bank's "assets" are the things that enable it to conduct monetary policy via Open Market Operations.

Less value on the asset side as a result of losses means that they are that much "less able" to conduct Open Market Operations. It may look insignificant with the Yen at these levels, but that could change quickly. Mounting Central Bank losses and a falling Yen could easily lead to a situation that gets out of control. 

Wed, 11/28/2012 - 14:43 | Link to Comment Overflow-admin
Overflow-admin's picture

You mean they would need say... a PENTAKILLION bailout?

Wed, 11/28/2012 - 14:54 | Link to Comment Bastiat
Bastiat's picture

233B/156T  = .15%  If you inflate your balance sheet enough even 233B losses are de-whopped.  Since mark-to-solvency asset value accounting is in effect and net worth is already a fantasy, no problem. 

Wed, 11/28/2012 - 15:48 | Link to Comment chinaboy
chinaboy's picture

Welcome to the era of zombie central banks.

Do NOT follow this link or you will be banned from the site!