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What Happens If "Whatever It Takes" Is Not Enough?
Since promises are as good as gold (or better apparently) for the world's central bankers, the BoJ's new man Kuroda dropped those three little words that worked so wonderfully for Draghi back in July. At 1943ET, Kuroda told the world he would do "whatever it takes" to rid his nation of the ravages of deflation. However, unlike the 200 pip rally in EURUSD that Mr. Draghi's soothing words created (and a risk on rally that last for months); it appears the world's investors are a little tired of that ol' chestnut. Since Kuroda opened his mouth and kept promising moar and moar (open-ended buying of longer-dated bonds), the Nikkei has dropped over 100 points and USDJPY has strengthened 60 pips and rising. The question now becomes, what happens if 'whatever it takes' is not enough? Meanwhile the JPY strength is wreaking mild havoc with US equity futures which have dropped 6 points from Friday's close.
When Draghi spoke the magic words...
When Kuroda tried it...
Gold and Silver are giving back earlier gains...
and US equity futures are sliding (now below Friday's closing VWAP)...
Perhaps this is what Kuroda needs to do... "I would do anything for [inflation]"
... but I won't do that...
Charts: Bloomberg
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Yay. Japan is doomed. US is doomed. Europe is doomed. Stash some Zimbabwe dollars. Those will at least keep you warm when you used them as firewood.
Im sorry but I have to break in and get on record...
What the Frag just happened to the Nikkei it flat-lined for an hour?
Lunch time dude. Seriously.
Zimbabwe, Weimar, Hungary, Greece hyperinflations is what happpens.
http://seekingalpha.com/article/358571-protect-against-the-currency-syst...
What would it take to get the Bernank to just STOP?
A hail of bullets.
Bento time!
You need to go out and stand on the porch a little while longer.
n225 up after lunch = good sushi
n225 dn after lunch = bad sushi
Friday night bingo.
SSEC down 2.60+, NY FED has activated it's EUR buying prior to Europe open.
What if "Whatever it takes" is more than enough?
Japan has a 20 year head start on the West down the road to monetary/economic/political ruin. What we are seeing now smells of total desperation. They are almost out of time and they know it.
It is highly likely that theirs will be the first major currency/bond market/economy that goes "kaboom".
What happens in the immediate aftermath of this event will be very interesting to observe. Markets are likely to force other bankrupt governments to abruptly abandon now-discredited "Keynesian" policies. Economic/political chaos and social unrest are sure to ensue.
Interesting times, indeed.
I wouldn't be surprised if we throw them under the bus and let China cause the kaboom you speak of.
Kyle Bass gets to buy more nickels?
If it doesn't work the answer is clear: more rapidly loot the middle and lower middle classes, starting with the lower middle: in short, exactly what is happening in the U.S., where it isn't "working."
Most effective thing they could do: put a 10K check in the mail addressed to each US household. But that smacks of bailout. And we know they would never do that! It's just not right ...
You know, that was the Original concept of the Helicopter Dropping of Money to Rise from the Liquidity Trap.
Massive stimulus in the form of money in the public's hands.
Welp, see where we got to with that, eh?
The monied interests stuck their fingers in the middle, just like the primary dealers facilitating the fed bond monetization.
Back to work peasant. There're taxes to be paid.
They are already doing massive bailouts to a'select crosssection of peeps. To the rest, Back to work piss ants,, there are taxes to be paid.'
You know, horses did a lot of the transport in WWI, artillery, ammunition, supplies. It was hard work pulling wagons through muddy France and they would whip the horses to motivate them. Eventually, a horse could do no more and just stopped, laid down and in due course, died. There's an analogy here if I could just put my finger on it ...
the ravages of deflation are the balm of healing....preventing it is direct and total opposition to economic recovery....which is why central banksters are criminals who protect the perpetrators and punish the less guilty.
I'm just glad we live in a country that isn't a socialist police state that debases their currency like a manic counterfeiter on steoroids
Meanwhile in China:
I guess it's better than a sharp drone in the eye.
A drone in the eye is worth two in the bush.
Or something like that.
For good measure, they stated the reason as loss of control of the Senkaku.
I thought it was for the watering down of Sake - leading by example - the first sign of Inflation.
Hit em where the Sake don't shine...
bang dae ho
It's that lousy Smarch weather. Homer Simpson strikes again. Something bad always happens on the thirteenth hour of the thirteenth day of the thirteenth month.
You really can't do anything but laugh at this comedy theatre of the absurd.
Put on a cowboy hat and ride this baby to oblivon.
I've tried being constructive, it worked about as well and teaching a four limb amputee how to ride a bike.
If I ever go to court I'm presenting my defense in baby talk.
Unless there is a major quake, Japan won't be the first domino to fall. The cities are still quiet and wealthy (not so the countryside but it doesn't count.) Better look towards Europe where there are so many plates in the air that it is now almost certain that one or two will fall. The markets are "under control" but the people are not. Italy first? I would bet for Catalunya!
Large quake in Japan is guaranteed to happen, except they have the other effect. They only help their economy. Broken windows and killing off the elderly. Both things Japan needs.
This has indeed been the case in the past but Tokyo would be different. The Tohoku 2 years ago (next week) was empty, mostly elderly with little industry. The Kanto around Tokyo has more than 30 million people and a quarter of Japanese industries (Less than is was 20 years ago but still significant). Just feeding these people will be next to impossible. Rebuilding, sure but with what? More debt?
Don't know what the money-fiddlers should do but someone should call the A-Team to deal with these clown-shoes for the rest of us. "If you have a problem - if no one else can help - and if you can find them - maybe you can hire: The A-Team."Kyle Bass will make another fortune.
If there is anyone left to pay him.
ain't nothin you can do
it really is over
Ron Paul seems to think it may be.
Banksters are going to have to hope that the military will back them as the masses go out with pitchforks and lanterns after them.
"The masses" will be looting their local businesses as per, e.g., Katrina, only the cops will be nowhere to be found - corrupt, maybe, but not stupid, they'll have banded together as a de facto mafia. The ultrawealthy will be safe and sound in their fortresses and compounds and private islands "far from the madding crowd".
(Note: I don't actually believe this, as long as they have enough fuel to maintain the military and security apparatus, the world is their oyster, people will beg for a government "solution" and they will magnanimously oblige)
Shouldn't be too hard to get the military to shoot their own people...provided you load them up on all those wonderful psychotropic drug cocktails.
Isn't JPYUSD the analog to EURUSD, not USDJPY (2nd chart) ?
Why does nobody in the world understand monetary VELOCITY?
Translation: "We'll do whatever it takes as long as it takes printing more bills of credit and not facing up to the fact that you can't get something for nothing forever."