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Japan May Or May Not Mint Quadrillion Yen Coins, But It Will Monetize European Debt

Tyler Durden's picture





 

Just when we thought America would be alone in crossing into the montary twilight zone where so many Keynesian lunatics have gone before, and where trillion dollar platinum coins fall from the sky right onto the heads of all those who have not even the faintest understanding of money creation, here comes Japan:

  • ASO: JAPAN TO BUY ESM BONDS
  • ASO SAYS JAPAN TO BUY ESM BONDS USING FOREIGN EXCHANGE RESERVES
  • ASO: ESM PURCHASES WILL HELP TO STABILIZE YEN
  • JAPANESE FINANCE MINISTER ASO SPEAKS TO REPORTERS IN TOKYO
  • ASO SAYS AMOUNT OF JAPAN’S ESM BOND BUYS UNDECIDED

For those who have forgotten, the E in ESM stands for European (the S for Stability), not Japanese (Stability). Otherwise it would be, er... well, JSM. Keynesian at that. But yes - Japan will now proceed to "stabilize" itself by monetizing European debt. Because its own JPY 1 quadrillion in debt was not enough.

As for a rehash of the old lunacy, which just like the OMT has driven the JPY much lower on nothing but innuendo and speculation, and will end the second the BOJ's plan is formalized, we get:

  • ASO WANTS STATEMENT ON BOJ, GOVT COOPERATION
  • AMARI SAYS GOVT, BOJ TO COOPERATE ON PRICE TARGET

Of course, when the latest and greatest "invention" out of the soon to be annexed 4th branch of Japanese government fails, and this time is not different after all, Japan will shock everyone when it unveils to the world...

  • THE QUADRILLION YEN GLOW IN THE DARK COIN

no seriously...

 


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Mon, 01/07/2013 - 23:07 | Link to Comment Theta_Burn
Theta_Burn's picture

Pure brilliance..

"If I go, we all go"

Mon, 01/07/2013 - 23:09 | Link to Comment ball-and-chain
ball-and-chain's picture

I refuse to make fun of Japan.

They are our true masters.

We've been following their lead for five years.

Debt.  Money printing.  Endless recession.  Deflation.

http://www.angrysinner.blogspot.kr/2013/01/saturday_7.html

Mon, 01/07/2013 - 23:25 | Link to Comment SafelyGraze
SafelyGraze's picture

dear banzai7: 

please to make rendering of trillion yen plutonium coinz

Mon, 01/07/2013 - 23:39 | Link to Comment flacon
flacon's picture

I am killing myself daily with sharp knives but I never seem to die.... quick help me.... buy me some ESM bonds or I'll simply eJAPulate fiat all over this world and then it would be YOUR problem. 

 

Mon, 01/07/2013 - 23:40 | Link to Comment Michaelwiseguy
Michaelwiseguy's picture

I don't think the mainstream media sheeple have ever seen anything like this;

Peirs Morgan Vs Alex Jones - The Gun Debate Round 1

http://www.youtube.com/watch?v=fEbBM4DG9V0&feature=youtu.be

Peirs Morgan Vs Alex Jones - The Great Gun Debate Round 2

http://www.youtube.com/watch?v=JAnKOMex_eQ&feature=youtu.be

Tue, 01/08/2013 - 00:18 | Link to Comment withnmeans
withnmeans's picture

Wow, looks like Steve Lies-man does really read ZH.  Seems he gave everyone a down arrow, we must of got to him.

He's such a Baby !

Tue, 01/08/2013 - 01:26 | Link to Comment fourchan
fourchan's picture

oh what a web they weave all in an effort to deceive.  that web is made of nothing but imagination.

Tue, 01/08/2013 - 08:26 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Repeat after me......NOT a ponzi.......not a ponzi.

Tue, 01/08/2013 - 09:01 | Link to Comment negative rates
negative rates's picture

Imagination, the greatest nation of all!

Tue, 01/08/2013 - 02:49 | Link to Comment Dr. Sandi
Dr. Sandi's picture

Hey Wiseboy.

Instead of sticking this link on every thread on ZH, why don't you stick it up your ass instead?

Mon, 01/07/2013 - 23:35 | Link to Comment Anusocracy
Anusocracy's picture

Japan is a canary in a cat's mouth.

 

Tue, 01/08/2013 - 01:26 | Link to Comment fourchan
fourchan's picture

lol acting like a cat. chomp.

Mon, 01/07/2013 - 23:41 | Link to Comment Michaelwiseguy
Michaelwiseguy's picture

.

Tue, 01/08/2013 - 04:50 | Link to Comment ricky2
ricky2's picture

"The forbidden fruit must be tasted!!!!"

Tue, 01/08/2013 - 09:22 | Link to Comment Tursas
Tursas's picture

Conclusion: electrons in Japan's central bank cost less than in ECB!  Does ECB pay also interest for these electrons?

Tue, 01/08/2013 - 09:52 | Link to Comment cosmyccowboy
cosmyccowboy's picture

the financial suicide bomber...

Tue, 01/08/2013 - 09:52 | Link to Comment cosmyccowboy
cosmyccowboy's picture

the financial suicide bomber...

Mon, 01/07/2013 - 23:09 | Link to Comment OrestesPenthilu...
OrestesPenthilusQuintard's picture

How can I get one?  All I need is one - set for LIFE!!

Mon, 01/07/2013 - 23:09 | Link to Comment Mactheknife
Mactheknife's picture

Aso gives new meaning to the word "Kamakazi".   ROLL TIDE!

Mon, 01/07/2013 - 23:11 | Link to Comment FL_Conservative
FL_Conservative's picture

If you're gonna go, go down in a big ball of flames.

Mon, 01/07/2013 - 23:13 | Link to Comment williambanzai7
williambanzai7's picture

This is the spin cycle, where everything gets mixed up in an attempt to confuse fringe observers such as ourselves.

Aka, global debt circle jerk

Mon, 01/07/2013 - 23:54 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Apparently no difference now between Japanese banksters and Anglo banksters.

Mon, 01/07/2013 - 23:57 | Link to Comment rehypothecator
rehypothecator's picture

More like a global debt nightly public circular ass fuck.  It's starting to become difficult to watch.  

Tue, 01/08/2013 - 01:09 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

I'm so fucking cheering for the fucking trillion dollar coin...

 

it doesn't get more zimbabwe than that.  Let's pray they do it.

Tue, 01/08/2013 - 08:53 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

At least the air would be backed by something.....hell.....it's a start I suppose.

 

Tue, 01/08/2013 - 09:17 | Link to Comment boogerbently
boogerbently's picture

Eventually, as a novelty item, some collector would PAY the Trillion/Quadrillion for the coin.

Mon, 01/07/2013 - 23:13 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Roll tide, time to adjust the power ranking for the SEC, again. Georgia-Alabama was the championship game. How many red states in the SEC again?

Mon, 01/07/2013 - 23:22 | Link to Comment nmewn
nmewn's picture

LMAO at yet another yankee team being completely embarrassed in prime time...lol.

Speed kills the most effectively ;-)

Mon, 01/07/2013 - 23:53 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Speed kills the most effectively ;-)

 

You're talking about HFT right?

Mon, 01/07/2013 - 23:56 | Link to Comment Freddie
Freddie's picture

Bread and Circuses to distract the stupid sheep.  Keep watching Tv and Hollywood's shit - serfs.

Tue, 01/08/2013 - 00:40 | Link to Comment otto skorzeny
otto skorzeny's picture

the mouth drooling southerners love negroes-as long as they're on the football field(and not fucking their daughters). it takes their minds off of their mind-numbing poverty and poor education system. plus-they get way more back from Uncle Sam than they put in so they can devote more time to dumb shit like watching football instead of working. Rah Rah Sis Boom Bah.

Tue, 01/08/2013 - 07:32 | Link to Comment nmewn
nmewn's picture

Spoken like a good (and depressed) Catholic...lol.

Mon, 01/07/2013 - 23:28 | Link to Comment Mr. Magoo
Mr. Magoo's picture

And then the truth comes out

http://www.youtube.com/watch?v=1z-AxgueBRk

Mon, 01/07/2013 - 23:15 | Link to Comment NumberNone
NumberNone's picture

It' s my understanding that Monopoly will be taking over the creation of the Trillion $$ coin and all future currency.   The Monopoly game currency has actually become more valuable than US currency.  

Mon, 01/07/2013 - 23:16 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

The patients are running the insane asylum.

Mon, 01/07/2013 - 23:19 | Link to Comment chump666
chump666's picture

YES! 

It's getting crazier by the second.

Mon, 01/07/2013 - 23:17 | Link to Comment nmewn
nmewn's picture

Clearly when they start confusing their acronyms with calculus we've aleady crossed the rubicon.

Mon, 01/07/2013 - 23:24 | Link to Comment Catflappo
Catflappo's picture

It sounds like they are creating the Japanese International Stability Mechanism.

I'm not sure if that's an acronym or not though?

Tue, 01/08/2013 - 01:27 | Link to Comment lunaticfringe
lunaticfringe's picture

+2000. 1k for the nic, 1k for the acronym

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon, 01/07/2013 - 23:20 | Link to Comment wtf.gov
wtf.gov's picture

Hahaha, kamakazi monetary policy!! Can't.make.this.shit.up

Mon, 01/07/2013 - 23:24 | Link to Comment Manthong
Manthong's picture

So when do the OMF purchases begin?

O in OMF stands for Outright  (the M and  F stand for..).  Well, you know.

Mon, 01/07/2013 - 23:28 | Link to Comment Cdad
Cdad's picture

So...wait...what you're saying is...that Japan is so desperate to deflate their currency, they are threatening to buy worthless Euro bonds?  LOL!  Have at it then.

Good grief...who is left?

Mon, 01/07/2013 - 23:35 | Link to Comment Stoploss
Stoploss's picture

The Japanese will be dying en mass pretty soon it would seem. 

Tue, 01/08/2013 - 02:53 | Link to Comment Doña K
Doña K's picture

I am in a Tokyo suburb and today I was at the post office which in Japan is also a depository insitution. The line on the banking side was curriously very long. What I don't know is whether they were withdrawing, depositing or buying bonds. As you may know the wifes are holding the purse strings.  

I may have an answer tomorrow.

Tue, 01/08/2013 - 06:40 | Link to Comment JamesBond
JamesBond's picture

last week I was at the bank near the kamata station and was exchanging dollars to yen.

i also saw long lines but it seemed they were making deposits not withdrawing.

ps  my wife was with me  :)

Wed, 01/09/2013 - 01:23 | Link to Comment Doña K
Doña K's picture

What a coincidence! It had to be Nishi Kamata that's were soft bank is I think. 

Mon, 01/07/2013 - 23:32 | Link to Comment pauhana
pauhana's picture

Wow!  This is brilliant!  What metal will they choose to mint the coins?   Let's hope that whatever they choose, it won't be radioactive.

Tue, 01/08/2013 - 02:52 | Link to Comment Dr. Sandi
Dr. Sandi's picture

They should choose gold then. I understand that many of the other metals will become radioactive when exposed to radiation.

You don't want to have to repatriate a bunch of glowing coins when the American Occupation Force arrives to clean up what's left of Japan after the Fuckyshima incident has killed off the final Japanese citizen.

Mon, 01/07/2013 - 23:34 | Link to Comment ReptilianSlaveMaster
ReptilianSlaveMaster's picture

Markets will all go up in a straight line from here on fake money, all who short will lose everything to inflation unless they buy gold

Mon, 01/07/2013 - 23:36 | Link to Comment Catflappo
Catflappo's picture

International finance gets easier by the day.  How the hell did everyone miss this fiendishly simple fixes before?

Mon, 01/07/2013 - 23:37 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

What Happen If U.S. Treasury Can Just Create A Trillion Dollar Coin Out of Thin Air

http://investmentwatchblog.com/what-happen-if-u-s-treasury-can-just-crea...

 

Mon, 01/07/2013 - 23:48 | Link to Comment Temporalist
Temporalist's picture

The Trillion Dollar Coin (via WSJ)

Video: The Trillion Dollar Coin Explained

http://www.dailypaul.com/268934/the-trillion-dollar-coin-explained

 

If they can mint (print) a trillion dollar coin to deposit at the Fed why not mint (print) enough to buy the Fed and all the central banks in the world and own all the shit?

 

Doubtful that this would lead to anyone thinking (I <3) Kruggers the wooly garden gnome is batshit, off the walls, one scoop short of a sundae, loose screws, anally probed by aliens, is nuts.

Tue, 01/08/2013 - 00:43 | Link to Comment Totentänzerlied
Totentänzerlied's picture

"have the Treasury sell pieces of paper labeled “moral obligation coupons”, which declare the intention of the government to redeem these coupons at face value in one year."

Ladies and gents, prima facie evidence that Krugman is a ****ing scumbag who does not give a damn if all people on fixed incomes starve to death. Give this man another Nobel. Oh, wait, there's no inflation, hasn't been any, and won't be any (but when there is, it's good, and the Fed can shut it down in a second if it wants) so all is well!

Come on Krugman, face-value in one year... you're calling for the UST to fleece people just like they are with bondholders, ****ing jackass.

There's more.

"It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value."

BECAUSE EVERYONE TRUSTS THAT PARAGON OF FISCAL DISCIPLINE, THE U.S. GOVERNMENT! WHO WOULDN'T WANT TO THROW THEIR MONEY AT THIS BLACKHOLE OF CORRUPTION WITHOUT SO MUCH AS A PINKY-PROMISE OF EVER BEING REPAID?

This country is so unbelieavably broke that a so-called "world-class" economist actually printed this inane bullshit under his own ****ing name.

You know how Krugman falls asleep every night? Howling with laughter at the credulous fools who think he's an honest person!

Mon, 01/07/2013 - 23:46 | Link to Comment blindman
Mon, 01/07/2013 - 23:47 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

It never ceases to amaze me how a once proud, industrious and intelligent group of people can become such complete idiots.

 

Tue, 01/08/2013 - 00:02 | Link to Comment TrulyBelieving
TrulyBelieving's picture

Are you talking about the Japanese people or Americans?

Tue, 01/08/2013 - 00:21 | Link to Comment knukles
knukles's picture

Mexicans

Tue, 01/08/2013 - 00:35 | Link to Comment otto skorzeny
otto skorzeny's picture

the Japanese are/always have been fucked in the head. they seem to take outdated traditions well past their useful lives.

Tue, 01/08/2013 - 02:44 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

They are still proud and industrious. The answer to your question is "Demographics" and mismanagement of the excess reserves of the 60's and 70's

Tue, 01/08/2013 - 08:00 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Before you get all wet and horny about those lovely, cuddly folks called the Japanese,  please do a little research:

http://en.wikipedia.org/wiki/Unit_731

http://en.wikipedia.org/wiki/Burma_Railway

 

Tue, 01/08/2013 - 08:37 | Link to Comment youngman
youngman's picture

We are not proud anymore for sure....we appoligize.....we are not industrious...we do not want to get our hands dirty anymore....intelligent.....not the sheeple...but the elite know exactly what they are doing...they do have an end game...

Tue, 01/08/2013 - 08:57 | Link to Comment Element
Element's picture

Yes, but it's only fiat.

Tue, 01/08/2013 - 20:07 | Link to Comment Mentaliusanything
Mentaliusanything's picture

The long term effects of Radiation in the food chain and its ability to enter the blood stream and thus the brain via the spinal cortex barrier is, as yet, unresolved. There has been some observations taken over the last two years that seem to acknowledge that Radiation has destroyed the 'Rational' part of the Brain in the Higher Order Japanese while the lesser classes such as workers and Housewives have had dying off of the Frontal Lobe that produces human feelings of trust and care.

I laymans terms .... The leaders are Certifyably Insane and the people just don't give a Fuck anymore.

Mon, 01/07/2013 - 23:49 | Link to Comment Freddie
Freddie's picture

How about some Fukashima commemorative coins with MOX and a half life of 250,000 years? 

They would sure beat the hell out of Obama/Mugabe/Krugman's Platinum coin.  

Mon, 01/07/2013 - 23:53 | Link to Comment Glass Seagull
Glass Seagull's picture

 

 

[Removes ether-soked rag from mouth and says]

"Japan trying to boost EUR/JPY."

[Returns ether-soaked rag to mouth; troubles melt away]

Mon, 01/07/2013 - 23:55 | Link to Comment blindman
blindman's picture

why 1 trillion, that is just myopic. make it a cool
double quad plus. and why deposit it in the fed's
vault? put it by my house, no? or it may end up at
the bottom of a lake or lost at sea. no problem,
mint another couple just for grins.

Mon, 01/07/2013 - 23:56 | Link to Comment Obchelli
Obchelli's picture

It's like guy who can't swim is sitting in a leaking boat in the middle of the ocean and throws one remaining oar (which he actualy doesn't have) to drowning person nearby...

Tue, 01/08/2013 - 00:01 | Link to Comment monad
monad's picture

Just one wafer thin mint...
http://www.youtube.com/watch?v=HJZPzQESq_0

Tue, 01/08/2013 - 00:12 | Link to Comment williambanzai7
williambanzai7's picture

Everyone got junked by Taro the Debt Monkey

Tue, 01/08/2013 - 00:19 | Link to Comment Temporalist
Temporalist's picture

Mountaineers call it "getting flossed" when the rope of one party of climbers rips another climber or party off the mountain...to plunge into the abyss.

Tue, 01/08/2013 - 00:24 | Link to Comment knukles
knukles's picture

Decisions decisions decisions

Which empty Ft Knox gold vault in which to store the Platinum Coin?

Tue, 01/08/2013 - 00:35 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

Knukles.. The U.S. should rent space in their empty gold vaults for the Japanese

to store all their radioactive waste. At least Fort Knox would have a real purpose.

Tue, 01/08/2013 - 01:15 | Link to Comment Dr. Engali
Dr. Engali's picture

Fort Knox does have a purpose .... Where else is the U. S. going to store all of that tungsten ?

Tue, 01/08/2013 - 08:39 | Link to Comment youngman
youngman's picture

Oh trust me ...they will build a huge new bank/storage facility in Chicago to honor the annoited one....

Tue, 01/08/2013 - 00:42 | Link to Comment ZFiNX
ZFiNX's picture

Things are heating up now. If only I didn't have to deal with this bureaucrat-sponsored slavery called a college education, I would spend all day watching.

Tue, 01/08/2013 - 00:52 | Link to Comment otto skorzeny
otto skorzeny's picture

"That's the bitchin part about it -it don't matter-if you can't afford it-fuckin' finance it"-Judge Reinhold in Ruthless People

Tue, 01/08/2013 - 00:43 | Link to Comment yogibear
yogibear's picture

Get the wheelbarrows ready. 

Japan, your making Bernanke and the federal reserve banksters jealous with all this currency trashing. They thought they were the  leaders of currency debasement.

The US will have to catch up.

 

Tue, 01/08/2013 - 00:49 | Link to Comment joego1
joego1's picture

Obviously a case of debt envy.

Tue, 01/08/2013 - 00:51 | Link to Comment Totentänzerlied
Totentänzerlied's picture

That Kyle Bass must be feeling pretty stupid right about now, betting against Japan!

///////s/a/r/c///////

Tue, 01/08/2013 - 01:22 | Link to Comment Dr. Engali
Dr. Engali's picture

I'll monetize your debt if you monetize mine. Nobody will know who has what or what the fuck is going on. Come on it will be fun.

Tue, 01/08/2013 - 01:23 | Link to Comment DonutBoy
DonutBoy's picture

I'm guessing it's a deal they made with the Eurocracy.  Buy ESM bonds and we'll let the JPY fall against the EUR.  Otherwise they'd be quietly printing money and buying German bonds like the Swiss are doing.

Tue, 01/08/2013 - 01:29 | Link to Comment DonutBoy
DonutBoy's picture

It's all fucking insane.  Fiat currency is going to end badly, soon.

Tue, 01/08/2013 - 01:31 | Link to Comment silverserfer
silverserfer's picture

Japan can dere-a-lique my balls!

Tue, 01/08/2013 - 01:42 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Funny how ASO sounds so much like asshole after a few drinks.

Tue, 01/08/2013 - 02:04 | Link to Comment Itch
Itch's picture

Better levels to buy Yen i suppose, as absurd as that sounds. YIKES!

Tue, 01/08/2013 - 02:06 | Link to Comment jonjon831983
jonjon831983's picture

Wow, scrambling over each other.  Buy up EUR, pump up EUR and drive down JPY.

Now what is EUR going to do if they want to keep the currency lower?

How will the Swiss respond since they've been buying up EUR to keep CHF lower.

Tue, 01/08/2013 - 02:13 | Link to Comment Fiat agnostic
Fiat agnostic's picture

Debt monetizing Europe today will equal money returning to Japan in the future - to weaken the currency when it needs it most. Or do they want to stake a claim to the Global Reserve Currency? Or are they just trying to match the US dollars going into Europe to keep the whole situation nicely balanced and stable?? Whatever...

Tue, 01/08/2013 - 02:14 | Link to Comment Lord Of Finance
Lord Of Finance's picture

There is a gaping hole in the hull. We are taking in a deluge of water and as the captain stands at the wheel waist deep in sea water, these demented keynsians are telling everyone to climb on board.

   I mentioned before that alcohol doesn't do it for me anymore in trying to deal with this madness. I really have crossed through the gateway of opiate heaven. It's the only way I can deal with it anymore.

 

    Some peyote and morphine anyone?

Tue, 01/08/2013 - 02:57 | Link to Comment Dr. Sandi
Dr. Sandi's picture

It's important to remember that the people who own the ship aren't on board for the cruise.

Where's Isaac Washington? I need another drink. Make it a tripppple.

Hold the ice.

Tue, 01/08/2013 - 03:31 | Link to Comment Lord Of Finance
Lord Of Finance's picture

CUE THE MUSIC:

 

    ' . . . Come Aboard. There expecting you.'

             Let it flow. It floats back to you

 

                          chorus

Tue, 01/08/2013 - 02:16 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Turns out that Robert Mugabe was ahead of the curve......

Tue, 01/08/2013 - 02:22 | Link to Comment Oldrepublic
Oldrepublic's picture

blame in on US admiral Matthew C Perry

Tue, 01/08/2013 - 05:21 | Link to Comment Wakanda
Wakanda's picture

The Europeans better put a geiger counter next to those trillion dollar coins they receive from Japan.

They will be minted from special "Fukushima Platinum" - for export only, no returns necessary.

Tue, 01/08/2013 - 08:05 | Link to Comment BuildItToBreakIt
BuildItToBreakIt's picture

Isn't it spelled Geithner counter?  Because, you know, it's the kind of money that's never enough, and you always have to come back for more...

Tue, 01/08/2013 - 08:26 | Link to Comment Wakanda
Wakanda's picture

Maybe they will be hot enough to power up a French reactor and feed the power grid.  Two fer!

Tue, 01/08/2013 - 06:06 | Link to Comment falak pema
falak pema's picture

In for a penny in for a pound. The world organises its resources on a CB planned basis in this financial shit storm.

No way out except join hands and print, print, print.

After twenty years of Japanese doldrums get ready for thirty years of FIRST world doldrums.

As the welfare state melts in all these rich countries and the BRIC nations pull the rug from under their feet via RM sales, of which OIL is queen. Your pensions are now part of the fiat bonfire. Never mind, its only paper! 

Hello Putin! Hello Qatar, Hello Dolly! 

What Reagan-Thatcher bequeathed to First world as they sowed the halcyon fields of deregulated capitalism, aka pump n dump CHEAP oil, pump and dump cheap borrowed money, we will now reap; as the  killing harvest of capitalism gone mad. 

 

Tue, 01/08/2013 - 06:48 | Link to Comment Yperkeimenos
Yperkeimenos's picture

Issuing a Trillion Dollars,Or Yen, backed by a platinum coin is still better than a Trillion Dollars backed by debt(future promise of repayment). At least should the Financial Sector or the Goverment collapse you still get to keep the coin which,unlike debt or bonds,is a tangible thing.

Tue, 01/08/2013 - 08:05 | Link to Comment hooligan2009
hooligan2009's picture

welcome to anothber facet of the new normal. we have already seen that central bank actions have reduced "money productivity" to close to zero. that is, incremental additions in money supply result in no increasein economic output. 

not content with the joint "central bank agreed" multi-trillion swap lines, the next round of geo political unrest will be sponsored by precisely this sort of action.

the Ministry of Finance in Japan will instruct the Bank of Japan to sell 500 hundred billion euros worth of yen (say 45 trillion yen) in order to depreciate the yen. it will do this at a rate that will shift the yen per euro fx rate by 0.5 big figues per day over a period of a few months. at the margin this will "cost" around 10 billion euros per day for 50 working days.

this will move the yen per euro rate from c. 110 - 115 all the way up to 145-155 and will also push the euro up against the dollar and the pound.

the US treasury will not call Japan a currency manipulator.

the strength of the euro will make european exports less competititve against the yen, throwing more europeans out of work whilst Asia and the US take more (radioactive) Japanese exports.

the injection of yen (via money creation by Japan) into the japanese economy will have the usual impact on the output of the japanese economy, i.e. zero. The money sloshing around in Japan will increase, leading to even less money productivity and probably below zero. 

Tue, 01/08/2013 - 08:38 | Link to Comment Super Broccoli
Super Broccoli's picture

i don't really get japan's plan there ... if inflation / monetary devalution is what they are after why don't they just monetize their own debt ?

Tue, 01/08/2013 - 11:57 | Link to Comment hooligan2009
hooligan2009's picture

they already have

Tue, 01/08/2013 - 08:45 | Link to Comment BigInJapan
BigInJapan's picture

They'll kill the Yen. This is the prelude to the new Asian joint currency. They'll write down Yen debts at whatever rate they want. We're talking about the Japanese here - they can do whatever the fuck they want to - idiotic as it may be.

Tue, 01/08/2013 - 09:00 | Link to Comment Element
Element's picture

Am I missing something here, what's the ultimate logic of this?

Tue, 01/08/2013 - 13:45 | Link to Comment hooligan2009
hooligan2009's picture

weaken the yen and taint the nuclear free global trade system with radioactive japanese exports

Tue, 01/08/2013 - 09:50 | Link to Comment Quaderratic Probing
Quaderratic Probing's picture

JAPAN TO BUY ESM BONDS USING FOREIGN EXCHANGE RESERVES Now I know Japan is finished, if they see it's doomed why not use the cash reserves to help bail out 1% bond holders in Europe? It would just be waisted trying to save Japans Public holders of debt... They are just middle class anyway and as such scheduled for destruction.

Tue, 01/08/2013 - 13:19 | Link to Comment DeliciousSteak
DeliciousSteak's picture

Japan realizes that the EZ is simply experiencing growth pains, which is quite normal on a project this massive in scale. It has seen the resiliency of the currency even when faced with massive outside pressure by investors and drawn the conclusion that it is here to stay. The Mediterranean nations are battling hard and will survive. What remains to be done is closer co-operation and elimination of as much of the widespread corruption as possible.

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