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Japan's Amari Backtracks On "Stock Market Targeting", Says Government Has No Price Target For The Nikkei

Tyler Durden's picture




 

If anyone is confused why the BOJ refused to do anything of note until January 1, 2013 at which point it would proceed with open-ended monetization a la the Fed and the ECB's OMT, the reason is simple: it allows the country's (transitory) leaders to jawbone, threaten, cajole and coax, in what will be daily attempts to talk the currency lower without actually implementing any monetary action: just like the ECB has done so far. Case in point: the now daily speeches by Japan's economic and fiscal policy minister Akira Amari, who every single day of the past week has been talking to reporters, on many case openly contradicting himself, and whose only purpose is to spook any remaining Yen longs into submission. Sure enough here comes today's sermon:

  • AMARI: ABE CAREFULLY CONSIDERING BOJ GOVERNOR CANDIDATES
  • AMARI: ABILITY OF BOJ CANDIDATES MORE IMPORTANT THAN BACKGROUND

But funniest of all:

  • AMARI: GOVERNMENT HAS NO TARGET FOR STOCK MARKET

Wait, back up, what? It was just four days ago that Amari himself made it very clear that he would not sleep until the Nikkei hit 13,000 by the end of March. From Japan Times:

Economic and fiscal policy minister Akira Amari said Saturday the government will step up economic recovery efforts so that the benchmark Nikkei index jumps an additional 17 percent to 13,000 points by the end of March.

 

“It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31),” Amari said in a speech.

 

The Nikkei 225 stock average, which last week climbed to its highest level since September 2008, finished at 11,153.16 on Friday.

 

We want to continue taking (new) steps to help stock prices rise” further, Amari stressed, referring to the core policies of the Liberal Democratic Party administration — the promotion of bold monetary easing, fiscal spending and greater private sector investment.

 

Amari said the Nikkei’s recent surge translates into combined share appraisal gains of some ¥38 trillion among domestic corporations, including financial institutions.

 

The key index started rallying from around 8,600 points in mid-November when then-Prime Minister Yoshihiko Noda decided to hold a general election Dec. 16 that saw his ruling Democratic Party of Japan trounced by the LDP. Share prices have risen largely in response to the yen’s depreciation against other major currencies on expectations for aggressive monetary easing measures by the Bank of Japan since the LDP’s return to power.

Ignoring for a minute the fact that an status quo minister finally let one slip and told the truth behind all the lies of inflation, personal consumption, NGDP, and other "targeting" and admitted it really is all about "stock market targeting", it is simply humiliating and surreal that government leaders treat those who listen to their daily lies like lobotomized cattle, who can't remember what they said a few days ago. But the bigger issue here is that it appears that even the Japanese economy minister has backed off his stock market target, because suddenly he doesn't feel so confident it can be achieved.

Does this mean the Nikkei will drop, and drag the USDJPY, and the yield on the 30 Year down with it. All signs suddenly point to yes.

The only question is why the flip-flop. We hope to find out soon, although the answer may be as simple as the political pushback that Abe is getting in his pick of the next BOJ, as we explained a week ago, which as most know is Kuroda.

Should Abe's pick for his personal printing lackey not be chosen, then all bets about the Japanese reflation are immediately off as the political wedge will once again be inserted and all attempts to send domestic energy prices into the stratosphere will be crushed.

 

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Thu, 02/14/2013 - 21:34 | 3245093 TotalCarp
TotalCarp's picture

And herein is the problem of wrapping yourself into a cloak of economic policy consisting of nothing but bullshit.

Thu, 02/14/2013 - 22:12 | 3245175 MrX
MrX's picture

you know I love anything japan: http://vimeo.com/15056028

Thu, 02/14/2013 - 21:41 | 3245105 fonzannoon
fonzannoon's picture

Another manufactured and managed crisis. Boring.

Thu, 02/14/2013 - 21:44 | 3245115 ekm
ekm's picture

Agree.

Thu, 02/14/2013 - 21:44 | 3245111 ekm
ekm's picture

What matters is the price of crude oil in Japan. Nikkei is irrelevant.

Thu, 02/14/2013 - 21:44 | 3245114 Cdad
Cdad's picture

Man...this whole global central planning thing sure is cool.  I wish I could simply call out the value of stuff...like my car.  I call it is worth $1 million.  I also call that Ben Bernanke has to buy it from me on the day I sell.

There.  Who needs 401k anyway?

Thu, 02/14/2013 - 21:46 | 3245122 fonzannoon
fonzannoon's picture

They have identified Dorner through his dental records because his body was burnt to a crisp....and his drivers license...which was not.

Thu, 02/14/2013 - 23:13 | 3245331 BigInJapan
BigInJapan's picture

"...which was not"

Of course not. It had been discovered in a park after he'd tried to steal a boat, days before. Try to keep up now, this is the big league.

Thu, 02/14/2013 - 21:49 | 3245126 Cdad
Cdad's picture

"it is simply humiliating and surreal that government leaders treat those who listen to their daily lies like lobotomized cattle"

Do you mean like this gem from earlier today?

"NY Fed says the U.S. Didn’t Intervene in Currency Markets in 4Q."


Thu, 02/14/2013 - 21:58 | 3245146 Cdad
Cdad's picture

Mr. Bernanke,

Please call me tomorrow morning.  The car is for sale.  As previously announced, the price is $1 million. 

Regards,

Cdad

Thu, 02/14/2013 - 22:24 | 3245118 VonManstein
VonManstein's picture

Well pointed out regarding ECB BOJ not actually implementing monetary action. (not actaully diluting currency)

Its all management of the USD. Central banks are buying time at their own (currencies) expense to prevent a violent collapse of USD and global trade.

They are building a new system that is not quite ready yet. When its done, byebye USD -50% -70% ?

bullish EUR no doubt.. all the EURUSD weakness is smoke and mirrors.. politics.. Everyone falling for the Media and US/UK financiers... Germany/Russia/China are in cahoots

Get your Gold and Silver some EU exposure (NOK SEK) some NZD AUD and CAD and of course the CNY

But really, the USD is a joke

Thu, 02/14/2013 - 21:54 | 3245141 suteibu
suteibu's picture

No, they're still going to print and jack up the market.  The statements this week are just to shut down criticism prior to the G20 meeting.  Google "tatemae."

Oh, and Tyler, you know you aren't supposed to compare today's statements with yesterday's.  It is against the rules.  Besides, Amari's stance has "evolved" since then. 

Oh, and...hey look!  A Chinese ship is closing in on the Senkakus.

Thu, 02/14/2013 - 21:58 | 3245147 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

 

consisting of nothing but bullshit.


The FED only hires and retains the best and brightest. The majority of policy advisers as well as management are multiple degree holders.

Only those who do not understand the intricacies of modern economic theory would accuse those who do understand it as being full of BS.

It is not bullshit to create real value from nothing. Magical perhaps, but not bullshit.

To the untrained eye the FEDs modern alchemy appears confusing, but to those who understand, it is legitimate science.

do I really need to put /S ?

 

Thu, 02/14/2013 - 22:08 | 3245165 Yen Cross
Yen Cross's picture

   Hey Abe you horsehead ! What happened to all those raises you were calling for companies to give their employees?

  Crickets...

 

Thu, 02/14/2013 - 23:19 | 3245337 BigInJapan
BigInJapan's picture

That fat cunt at the Keidanren said "We'll try to see if maybe we could perhaps think about studying the possibility of raises in June."

You'd probably have to be able to speak Japanese to get the joke - but that is certainly no requirement to get a feeling for the level of intelligence with which these guys operate.

Thu, 02/14/2013 - 23:40 | 3245381 suteibu
suteibu's picture

Yonekura is a blight on the nation.  Fat cunt is right.

Thu, 02/14/2013 - 22:31 | 3245221 BigInJapan
BigInJapan's picture

They have no plan. The toothpaste is out of the tube and they'll keep resetting "goals, benchmarks, targets, mokuhyou" as the numbers - beyond their control - continue to move.

That "target" was nothing but a linear extrapolation of one or two days' rise in the Nikkei. Total fucking retardity. See what I did there? Made up my own word, I did!

Fri, 02/15/2013 - 04:24 | 3245649 dunce
dunce's picture

Good under lying fundamentals will cause indexes to rise eventualy. BS, delusions, and exuberance may also cause indexes to rise, but they can not sustain them even though the govt. spews BS like an active volcano. I see little being done that builds a strong economy in the major economic blocks.

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