• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Japan Unveils Extensively Priced In "Open-Yended" Monetization News

Tyler Durden's picture


In the most anticipated (and likely most strawman/leaked) policy actions, the BoJ and the Japanese government (still independent entities theoretically) have unveiled the new monetary policy to complement the $116bn fiscal stimulus plan to boost growth:


With epic amounts of JPY shorts and NKY longs, JPY was notably bid versus the USD (from Friday's close) going in, 30Y JGBs bid relative to 10s, and the NKY and TOPIX were leaking lower. Now is the time to see just how effective this efficient market is at pricing in the stabilization-to-retaliation phase of the current actions. Though of course, there is no intent to cough-'weaken'-cough the JPY:


So, as expected, the BoJ joins the Fed and ECB on the unlimited "open-yended"(TM) printfest bandwagon. So far JPY is not totally impressed.

 From our reading there is no change until Jan 2014 at which point the BOJ will monetize about 13 trillion in JGBs split between 2 trillion in BIlls and 10 trillion in bonds - perhaps giving cover for Aso's G-20 comments? or just as with the ECB, the mere threat of 'unlimited' easing is thought to be enough. Or, simpler, the BOJ wants its cake - lower JPY - and to eat its low bonds too...

But importantly from a flow standpoint nothing has changed, and nothing will change for the next 12 months. How Japan will get the sustainable cash inflow to push inflation to 2% in the interim is anyone's guess...


and close-up - 40 minutes to bring it all back...


On the fiscal side:


On the monetary side:


So between now and January 1, 2014.... nothing??

Full statement to follow (pdfs here and here)

BoJ1 by

BoJ2 by

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Mon, 01/21/2013 - 23:53 | 3174621 strannick
strannick's picture

Between a Bond bubble and an hyper-inflationary hard place.

Tue, 01/22/2013 - 00:00 | 3174652 notbot
notbot's picture

Abe chose door #2

Tue, 01/22/2013 - 00:05 | 3174674 trav777
trav777's picture

cool; go Japan.

Debt coupon must be paid, nobody is borrowing.  Growth isn't happening and this is the only mathematical way to balance things

Tue, 01/22/2013 - 00:08 | 3174681 markmotive
markmotive's picture

According to Kyle Bass, this will speed up Japan's debt implosion. The yen is toast.


Tue, 01/22/2013 - 00:33 | 3174729 nope-1004
nope-1004's picture

I fail to see why this is a problem.  Much like in the US, when the debt coupon needs to be paid, just print more and raise the debt ceiling.  To put it another way, if your home backed up with sewage and it started rising to the point where it approached the ceiling, would you deal with it, or raise the ceiling?

Any rational person would just simply raise the ceiling.  Dealing with the shit is just too difficult.

/ f'n sarcasm

Tue, 01/22/2013 - 00:36 | 3174739 ZeroAvatar
ZeroAvatar's picture



No need to edit, bro!

Tue, 01/22/2013 - 00:58 | 3174778 FEDbuster
FEDbuster's picture

Hence, the shit abyss.

Tue, 01/22/2013 - 08:08 | 3175037 GetZeeGold
GetZeeGold's picture



Almost time for plan B.


Does anyone remember what that is?

Tue, 01/22/2013 - 00:58 | 3174779 Troll Magnet
Troll Magnet's picture

Fuck you, Ben Shalom!

I know, I know. This isn't the thread for that.


Pocku You, Ben Salom!

Tue, 01/22/2013 - 01:16 | 3174804 eatthebanksters
eatthebanksters's picture

Back in 2007, after saying for 7 years that there was a hiusing bubble and that loans were carzy, I finally said 'this is for real, there is no problem!'  Well, we all know what happend in the real estate market and I got my ass handed to me.  I won't make the same mistake again.  What is happening in Japan ain't right...it wouldn't happen in a country with a healthy economy.  Make your own inferences...

Tue, 01/22/2013 - 01:28 | 3174810 Rogue Trooper
Rogue Trooper's picture

ZH is just fuckin' killing me.... nope-1004, good that you added the 'Sarc-tag' has the more gullible Keynesians out there would have given you a 100 greens in the chat room equivalent of a 'circle jerk'.

On the other hand, the Red Team members, that still believe, would have countered with a 100 Reds....

"Why can't these sound money morons see that to avert deflation we need to start getting serious, a little more stimulus and growth will return.  The animal spirits unleashed and confidence will finally triumph"

Dr Paul Krugman

Tue, 01/22/2013 - 08:12 | 3175038 GetZeeGold
GetZeeGold's picture



The animal spirits unleashed and confidence will finally triumph"

Dr Paul Krugman


Paging Dr. Ted Nugent.....please pick the the white courtesy phone.

Tue, 01/22/2013 - 05:36 | 3174973 Hobie
Hobie's picture

They need an atrium. Ceilings are so low rise.

Tue, 01/22/2013 - 09:43 | 3175143 trav777
trav777's picture

the flow of shit can't be stopped

Tue, 01/22/2013 - 01:44 | 3174830 Rogue Trooper
Rogue Trooper's picture

This tune from 1981 sums this shit up

Someone 'in the know' told me that at last years JACKSON HOLE gig they all played this tune has they all participated in the mandatory annual Central Banking 'core' Circle Jerk. 


Get the feeling, head is reeling
You think you're in control but you don't know me babe
I can move you, I can soothe you
I can take you places in a different way

And I don't think you understand
What I'm trying to say
I'll be your operator baby
I'm in control

Watch your action, close reaction
And everything you're thinking babe inside your head
Conversation, my creation
Nothing that you do you do unless I said

And you don't know the consequences
Of the things you say
I'll be your operator baby
I'm in control

All the things you tried to do babe
And all the words we've said before
Are only part of what I started baby
And you can't stop me anymore

Get the feeling, head is reeling
You think you're in control but you don't know me babe
I can move you, I can soothe you
I can take you places in a different way

And I don't think you understand
What I'm trying to say
I'll be your operator baby
I'm in contro

Tue, 01/22/2013 - 00:17 | 3174708 Thomas
Thomas's picture

I think it was red pill-blue pill rather than Let's Make a Deal.

Tue, 01/22/2013 - 00:48 | 3174764 old naughty
old naughty's picture

But Abe doesn't have the key.

The old keyman (Matrix) was 'hurried' to his death without divulging where the key was.

Neo knows. But Neo doesn't like "soylent" or "green" stuff.

Lucked (I mean Locked) out.

Tue, 01/22/2013 - 08:59 | 3175087 Snakeeyes
Snakeeyes's picture

It won't work, of course. Look at Japanese house prices versus US and EU housing. Japan is in a league all by itself (well, maybe Spain too).


Tue, 01/22/2013 - 00:03 | 3174663 ACP
ACP's picture

All this global money printing reminds me of "Gauntlet"...

"Wizard shot the food!" - Bernanke

"Warrior needs food badly!" - The Military

"Elf is about to die!" - Middle Class


Tue, 01/22/2013 - 01:07 | 3174791 Gidas19
Gidas19's picture

Straight to comment section here I go, skipping the central bank detailed bullshit writings, please let me summarize this long reading dear ZH realist. "We the people here at BOJ like to announce that Ben and the rest of the printing press operators around the globe are not the only ones with unlimited eeeeezzzzinngggggg abilities..." 

P.S. Fuck You Bernanke !!!

Mon, 01/21/2013 - 23:57 | 3174637 jonjon831983
jonjon831983's picture

Wait was that /sarc?

Tue, 01/22/2013 - 00:25 | 3174720 CPL
CPL's picture

Not according to PMs and Energy.


They've gone full pants on head retarded.

Tue, 01/22/2013 - 01:00 | 3174783 FEDbuster
FEDbuster's picture

You never want to go "full retard".

Mon, 01/21/2013 - 23:57 | 3174639 inevitablecollapse
inevitablecollapse's picture

this will end well

Tue, 01/22/2013 - 00:52 | 3174770 mayhem_korner
mayhem_korner's picture



Either the Winds of Fukishima are blowing hard south or Neil Peart's Thailand Express1 has stalled out in Tokyo...

1Far east choom wagon

Tue, 01/22/2013 - 01:03 | 3174787 FEDbuster
FEDbuster's picture

Central Bank Tweekers.

Tue, 01/22/2013 - 08:14 | 3175044 youngman
youngman's picture

Inn Japan they used to have "face"......if they lost it thru some event or mistake....they would kill themselves to save "face".....I bet millionw will do this when it falls apart...Japan is not going to make many friends in the export world....tensions will rise.....watch GM go to congress to tax imports from Japan....I also bet China and Japan have a little "dance" in the future

Tue, 01/22/2013 - 00:00 | 3174643 lolmao500
lolmao500's picture

While China sends some more ships in contested waters.


Three Chinese ships in disputed island waters: Japan

Three Chinese government ships entered waters around islands at the centre of a dispute with Tokyo on Monday, the day after China rebuked the United States for comments seen as supporting Japan.

Japan's coastguard said the maritime surveillance boats were sailing in and out of waters around a chain of Tokyo-controlled islands known as the Senkakus in Japan, which Beijing calls the Diaoyus, for nearly nine hours.

Tue, 01/22/2013 - 00:00 | 3174644 Al Gorerhythm
Al Gorerhythm's picture

The world's monetary system can be paralleled to a group of counterfeiters, all printing their money in the same room, all trying to convince each other that their money is good. 

Tue, 01/22/2013 - 00:00 | 3174645 ghengis86
ghengis86's picture

Back to you Ben Shalom

Tue, 01/22/2013 - 00:56 | 3174775 mayhem_korner
mayhem_korner's picture



a) Call

b) Raise

c) All In!

Tue, 01/22/2013 - 01:10 | 3174789 nope-1004
nope-1004's picture

Bens' got Q high.  COMEX has certificates claiming they had a full house.  Iceland has 4 Kings.  Geithner is on the phone keeping Ken Lewis apprised of the game.  Boehner is in the corner crying.  Pelosi got stoned from eating her lipstick.  The whole game was kind of a waste, but only a few saw it that way from the start with Madoff dealing and all.



Tue, 01/22/2013 - 00:00 | 3174649 John Law Lives
John Law Lives's picture

"OPEN-ENDED PURCHASING" is basically an admission that the central government has no f'ing clue how to generate sufficient organic economic growth to outpace federal spending.  Therefore, it draws upon massive stimulus and fiat money printing.  It is an act of desperation before the house of cards collapses.

100% FUBAR.

Tue, 01/22/2013 - 00:02 | 3174650 A Lunatic
A Lunatic's picture

Race you to the bottom.

Tue, 01/22/2013 - 00:02 | 3174654 joego1
joego1's picture

And so why are they waiting for 2014?

Tue, 01/22/2013 - 00:35 | 3174741 Water Is Wet
Water Is Wet's picture

+1.  They will be super serious in 1 year?

Tue, 01/22/2013 - 07:37 | 3175011 Frozen IcQb
Frozen IcQb's picture

Jawboning to 2014... LOL

The market will push up the Yen in 3, 2, 1..

Tue, 01/22/2013 - 08:08 | 3175036 swabeyjw
swabeyjw's picture

Just closed my long silver over JPY. I am surprised that on the daily scale, this move against is slow and not larger at this time. Looks like Japan has the currency wheel in hand for now.

Tue, 01/22/2013 - 00:01 | 3174656 AUD
AUD's picture

The obligation of the Bank of Japan is already junk, you just don't realise it.

It's a credit bubble.

Tue, 01/22/2013 - 00:02 | 3174658 LMLP
LMLP's picture

Complete Insanity continues...... How is is now so 'normal' to print money and buy your own bonds in every major economy.....Bernie Madoff was a pussy comparted to these freaks....WTF happened to the planet......

just when you thought the bubbles couldn't get bigger they are exponentially adding fuel.... FUCKING MORONS


Tue, 01/22/2013 - 00:19 | 3174709 NoDebt
NoDebt's picture

You ain't seen nothin' yet.  All previous bubbles have been rolled up into one giant mother of a bubble at the National level.  Unless they can put in their "one world government" prior to this state of affairs spilling it's cookies all over the living room, THERE IS NO HIGHER LEVEL TO WHICH THIS CRISIS CAN BE KICKED.  It ends at the nation-state level.  There is no limit on the lengths to which they will go to protect this status quo, therefore.

It's why they call it a liquidity trap.  Shoulda realized it was a trap but didn't, stepped into it, now there's no way out of it unless you want to gnaw your own leg off.  Nobody's ready to gnaw their own leg off yet (default).

Tue, 01/22/2013 - 01:06 | 3174790 FEDbuster
FEDbuster's picture

The Central Banker's theme song:


Tue, 01/22/2013 - 01:53 | 3174838 Never One Roach
Never One Roach's picture

'The Aliens' will buy all our debt....just like the NAR said they will buy all our empty boxes, riht?

Tue, 01/22/2013 - 08:17 | 3175047 youngman
youngman's picture

It used to be individuals created the bubbles.......now its the governments creating them...and they have bigger guns.....

Tue, 01/22/2013 - 08:38 | 3175067 caShOnlY
caShOnlY's picture

You ain't seen nothin' yet.  All previous bubbles have been rolled up into one giant mother of a bubble at the National level.

  Gubermints =  "gub-bubble"

Tue, 01/22/2013 - 00:02 | 3174659 ISEEIT
ISEEIT's picture

The big move was on a USD/EUR linked target.

Didn't happen (yet) SELL THIS FUCKER.

Short to the lower 88 (at least).

Tue, 01/22/2013 - 00:39 | 3174661 moonstears
moonstears's picture


Only thing left was a "triple dare Govt to be responsible for employment" followed by "triple dog dare". In a slight breach of ediquette BOJ went straight for the throat with  the immediate "triple dog dare".

Pussy banker wankers.

US Fed says "it's our problem" then they lie about the fucking numbers. Amateur masters of fiat at BOJ, JMO. Yen will fail quickly, from here, mark this post. Short that fucker in the FX.

repeat: Pussy banker wankers. Welcome to 1600 yen ($15-$20)  loaves of bread, Japanese friends! Mark it!

Tue, 01/22/2013 - 00:04 | 3174667 joego1
joego1's picture

I'm sensing some internal  bristling going on in Japan.b

Tue, 01/22/2013 - 00:06 | 3174675 NoDebt
NoDebt's picture

Time to up the ante on our side of the Pacific.  We're clearly falling behind in the "race to debase".  I say $88 billion a month plus ZIRP ain't gonna do it.  Time to double down like a good bunch of community organizers and bump it up to $160 billion a month (including $40 billion a month in outright purchases of S&P futures contracts) and -2% fed funds rate.  Not cutting it?  Double again.  And again.  And again.  We'll beat you to the bottom no matter what it takes.

Suck it, Japan! 



Tue, 01/22/2013 - 00:28 | 3174723 JackT
JackT's picture

Give it a few more days..Feb. or March...right?

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