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BoJ Unveils 'Shock-And-Awe' Quantitative-Qualitative Easing
As Citi's Todd Elmer notes, today's BoJ outcome looks far closer to 'shock and awe' than disappointment. It appears the BoJ's actions may speak as loud as their words for now - JPY is weakening and the Nikkei is rallying after Kuroda's last shot at a first impression appeared to beat expectations (covering for disappointing macro data - despite six months of jawboning and a 20% devaluation). Expectations, though tough to extract given the range of possible actions, appeared centered on extending maturities of bond purchases, increasing the size (median expectations of around JPY5.2tn per month or 50% higher than in Q1), bringing forward the open-ended nature of the program, and increasing scope to foreign bonds and REITs. In his effort to do "whatever it takes", the BoJ is upping asset purchases, extending the maturity of purchases and merging its asset purchase program; increasing the size to JPY7tn and buy securities out to 40 years. Though no mention of foreign bond-buying was made, and increase in ETFs and REITs is included. They have given themselves a two-year window to achieve the 2% inflation goal - paging Kyle Bass - and ironically, as the news broke Tokyo was hit by a significant earthquake.
- *BOJ INTRODUCES "QUANTITATIVE, QUALITATIVE MONETARY EASING''
- *BANK OF JAPAN MERGES ASSET PROGRAM WITH REGULAR BOND BUYS
- *BANK OF JAPAN TO BUY LONGER-TERM GOVERNMENT BONDS
- *BOJ TO BUY 7T YEN OF BONDS PER MONTH
- *BOJ SETS TIME HORIZON OF TWO YEARS TO ACHIEVE INFLATION GOAL
- *BOJ CHANGES MARKET OPS TARGET FROM CALL RATE TO MONETARY BASE
- *JAPAN QUAKE INTENSITY 4 IN CHIBA, NEAR TOKYO, NHK SAYS
Abe will be pleased with the initial kneejerk off Kuroda's words...
The Nikkei naturally knee-jerked higher too - but is fading back a little now...
ad naturally all risk-assets are bid on the wave of FX carry exuberance... see printing money does make things all better...
Though it seems the bigger the Fed balance sheet relative to the BoJ, the weaker the JPY gets?
Charts: Bloomberg
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Where's the story on THIS: http://www.icij.org/offshore/secret-files-expose-offshores-global-impact
http://www.youtube.com/watch?v=j2AvU2cfXRk&feature=player_embedded
Too bad they didn't catch NYC's billionaire mayor who off-shored much of his money in Tax Havens round the world to avoid paying his fair share.
“Mayor Michael Bloomberg on Thursday said there's nothing wrong with his money managers investing hundreds of millions of dollars in offshore tax havens, ….”
http://www.foxnews.com/topics/issues/overseas-tax-shelters.htm
It must be good to be King, eh, Mikey? A-hole.
Thats $750 Billion US Fiat per month folks!
Misplaced a zero there big d.
$75 Billion per month....pikers compared to the US Fed.
Pikers? When their economy is a third of the US? Lulz.
Hard to do math with shaking boobs......carry on.
Our USDJPY model's performance.
http://blog.quantsig.net/2013/04/04/usdjpypost-boj/
84,000,000,000,000.00 per year. No hyperinflation, nothing to see there...
recap of human craziness:
BoJ = weinmer 101
N.K.= luny Tune in charge-Iran Dup.=blow your ass up reteric=WTF=my dick is bigger-NOT...
Euro=theft of labor, open and notorious=desparation of banksters/polys/crooks in charge
Rusky=crooks taking from crooks or else!-hahaha-we want the money here now...putins put!
nwo=small arms roundup(monsanto style). line in sand?
rotation out of pm to casino=zirps cum along
shalom/krug=bubble epoc; truth tellers minimalized/discredited-where is the 3rd reich?
enter the savior of the world - vacationing in hawaii, getting a tan...
what could go right?
mideast=decent to chaos...
No, it's $73 bln per month.
This is one hell of a toilet-paper announcement - We'll see if the market buys their bullshit.
Too much toilet paper can clog the sewer line.
Well I believe the OP will be redeemed on his maths come 6 months when they have to do $730B/Mo.
More like $75 billion, but still substantial based on % of GDP and when compared to the Fed.
$750 billion per month!!!???? You just gave Krugman an instant hard-on.
Ctrl-p is the answer. What was the question?
CTRL-A
CTRL-ALT-DEL
Up-up-down-down-left-right-left-right-A-B-B-A
"Up-up-down-down-left-right-left-right-A-B-B-A"....select start!
I think the BOJ is Going Japanese, I really think so.
Haven't they tried it for the last 20 years?
But this time is different.
pods
And gold rallies $3. WTF. I'm starting to think someone, somewhere is in trouble and is liquiding it all...
Shadow banking is continuing to collapse. That's the "reason" behind the printing insanity, and the seemingly irrationally muted response in the price of gold. The humorous part is that ZIRP + printing is actually making the shadow banking collapse much, much worse.
Yeah but how many bit coins is it?
Poor Japan. You'll need to stave off China all out attack (on all fronts) soon and yes their $230billion of your bonds that could be dumped at anytime. FX/bond war to war.
All out war is imminent.
Only another war can solve their demographical & econ problems at this point. 3-11-3 was a Godsend for Keynesian GDP growth, but it's a good buttfucking in the long run.
your comment doesn't make any sense.
http://www.dryships.com/pages/report.asp
Clearer now?
There isn't going to be a recovery. There isn't going to be a return to credit expansion. There isn't going to be many useless eaters left on the face of the Earth by the end of this decade.
See 1929-1932 and 1939 for further Enlightenment.
maybe they can start with you?
you seem to know the future quite well, care to share your secrets..
His "future prediction" is basically "what has been happening since the credit collapse is likely going to continue". Shadow banking is continuing to crash, and ZIRP + print is making it worse.
If there is a major war which could be very close. It will blow the global ecomomy apart, probably beyond repair. The derivative/FX/bond/Stock market's are all intertwined on leverage that makes 2008 look like nothing. Even central banks will be obsolete, especially the ECB that is propped up by Wall Street main boy the NY Fed.
China was supposed to be the white knight econ savior for the global ecomomy. If they are inching to war using Nth Korea, then China will cut the West a new a-hole.
It doesn't look good, now with Japan in panic mode.
Depending whether it's a conventional or a thermonuclear conflict, CBs will be very vital, as they have always been.
RE: synthetic instruments & debt - such a war would also be a debt jubilee event, along with "write off" of millions of people.
I'm thinking that the economy is already beyond repair.
Only yours.
There is so mutch stuff rolling down the pipeline lately, that I am sure something big is going down and soon. Put your head between your legs and stay tuned!
Agreed - so Tyler - how many central banks are buying ETF's and REITS with endless money? How many are not admitting it and doing through some other means?
Be careful what you wish for, you just might get it...
When the hole gets too deep, dig faster.
All central bankers were cast from the same mold.
When growth is the problem, MOAR growth "has" to be the way out!
If this is true, it's gonna be hyper bullish...
According to posters on Weibo (Chinese Twitter), Peoples Liberation Army forces from the Shenyang Military Region are moving into North Korea, including elements of the 16th, 23rd and 39th Group Armies.
Question is... are they invading to overthrow their asses or to help them invade the South?
First- Someone made a lot of money from that spike on the chart. Wow!
Second - Good find lolMao500. Thursday looks like it's going to be very interesting.
3 chinese army groups BTW is 135k-180k troops. And this time, unlike during the Korean war, they have not just AK-47s... they have tanks, planes and artillery.
Since (so far) it's not being reported by the MSM... either it's total BS ... OR... China is doing this undercover and not ``invading`` them per say... but sending troops in to help them... for whatever purpose. Since China didn't ``invade`` NKorea per say, no news is reporting on it.
We'll see in the next few days.
either it's total BS......... yes
the pentagon would be going batshit crazy if this was the case and Haliburton would be mobilizing for another "infrastructure contract" code red.
you are broke.
Actually there is another quite logical explanation: Chinese want to take out that little kid that threatens everyone with thermonuclear war. If Americans or South Koreans did it, it would trigger very serious conflict - possibly WW3. In this case, Americans and South Koreans just siiting there and watching while the Chinese army takes that unpredictable maniac out of the picture. This way, the NK remains a Chinese vassal and the status quo is protected. If done properly the biggest winners will be the people of NK - better Chinese communism than the NK brand of communism.
sounds to real to be the case and anyway how does Goldman make money on that play?
just going to put my drink down.... ok
legit idea but doesn't explain the last 50 years of NK rule, this is not much different? why now?
Because now they have nukes... and they don't listen to China anymore... and China is more interested by money than loyalty to communism ideology.
They are scared NKorea will start a war because they are so a bunch of dumbasses... and once Korea is united, Beijing will be quite vulnerable.
totally buy your third point, China elite are all Goldmanite wanna be's, the first two points are still speculation. They maybe nuclear but can only throw it as far as a wing and a prayer. Can't trust any "western" intelligence on the matter either. As far as NOT listening to China, forget it, no sale.
What the answer is; is well beyond my pay grade.
Simple is my name so simple is my game.
Goldman owns the world, ergo, Goldman owns the Chinese and the Americans, they dance to Goldman's tune. NK is a franchise that too wants to be owned by Goldman. When you want to be bought and at a good price, you pimp your numbers any way you can. This is pimping and the Chinese are helping NK by acting scared. It's ALL about hookers and blow for these clowns.
Yes this might be thinking outside the box...ed wine, but it always comes down to fundamentals, tits, ass, cash, rinse, repeat
China is in there to take out the gang of 40 N Koreans who were plotting to take out the White House in 13 minutes flat... This was on special request from the teleprompter who was afraid he was going to get kidnapped on Masters Week...
~~~
Don't you people know anything?
+1
I was thinking of that just a few hours ago (how China may send parachuters to eliminate the punk and stabilize the situation).
I really hope they do this... Pyongyang is really close to the Chinese border (100 miles or so) and they don't have much defense on that axis... everything is aimed at SKorea. A couple of Scuds in retaliation on Beijing could be quite hilarious.
china troops are there to prevent us from attacking
Yeah it might be that simple.
More like to keep the mass refugee exodus from spilling into their country that will ensue if NK actually follows through on it's threats or if the mass starvation starts when the sabre rattling doesn't get NK their clockwork payoff of food and oil needed to keep the place from turning into total chaos.
You wouldn't need 180k troops for that sort of operation though, just nick his train next time he comes around for (green) tea..
Weibo as a news source upon which to base a post? Lol!
Dude it auto-spellcheck-corrects to "weirdo". Doesn't that make you a bit suspicious?
Everything that is *allowed* to appear on Weirdo is ChiCom propaganda.
I lived during the Cuban missile crisis... and back then, I had confidence in JFK, in the government. They were intelligent people and cared about the US.
Now? With the low life corrupt incomptent scum running congress and the WH?? Better kiss your asses goodbye if shit gets real.
I too, remember that time very well and agree with your assessment 100% for the government then and now.
That answer is directly this; money.
China makes bank off the US. North Korea? Not so much.
Love these war mongers on here, but China will act in CHINA'S best interests - and a war - over this NK turd's machinations - is not wise for them - and they know it.
My money's on them seizing control of NK, and making it a province. The US and Russia will glady agree, thus, ending the NK/SK crapola once and for all.
NK has no significant global role. It's a fucking pain in the ass I am sure for Bejing......
As I mentioned yesterday, I think you're forgetting the tremendous advantage China would gain in the absence of the petrodollar (and with their recent massive gold buys and helping Iran get Kish rolling, they're ready to roll day 1).
I think we're also forgetting that, as a vassal state, NK has ICBM and can EMP most of North America right now.
now we put out news based on an obscure twitter post?
I wanna give up.But somehow,i cant.Tell me,how to sell all my PM and buy bitcoins or apple or FB.Ha ha,anytime they smack the metals,i am angry,and charge another credit card to the full.Guess what?I wont pay the "ballance".
Fuck you Bernanke.
FM Amari did promise 13,000 on the Nikkei 225. He might be on target ahead of the upper house elections this summer. If the LDP wins control of that body, look out. Abe will be like Obama on steroids.
Timber!
Fuck you Bernanke-san
So I guess BOJ has become the ultimate hedge fund. Just print money and buy stocks and bonds? Hey why didn't Bernankle think of that ? Oh wait a minu.....BUY BUY BUY !
Just think, when JPY are worth nothing, assets priced in them will be worth an infinite amount.
Such is the logic of our times.
Zero times infinity still = zero.
Wow. Paging Robert Mugabe, paging Robert Mugabe. We have just located your economic baggage, it showed up in the lost luggage bin on a ANA charter flight.
I sure hope that anyone that was short the Nikkei had trailing stops on their trades. That market is 'manic'.
Japan NI225 12518.50 high 12362.20 12518.50 12073.50 low 156.30
And how much faster is this susposed to crash the bond market?
LOL
"Paging Kyle Bass"
You gotta be long the JGB, so you can sell more later ;)
Strangely, gold yet again reacts bearishly to bullish news. Curious...
More money printing?
"More soy sauce! More noodles! More Flames!.
Go ahead and print more fiat you silly central bankers.
Kabuki dinner theater there, here, everywhere!
Wow...Nikkei up over 5% from the day's lows!
Devaluating forward!
Devaluation we can believe in.
The Japs really need to man up and hang these scum.
I just watched Margin Call with my eleven year old who also had insomnia and she said, “What is this? Zerohedge with pictures?”
You have a smart kid!
LOL!
Well done. Let us know when you've got her saying, "Gold Bitchezz!"
I’ve been trying to teach her to speak respectfully to other people, but you touched on a family joke.
I’ve pouted to my husband, “No one called me a bitch today.” He replies, “Read Zerohedge comments dear, and if no one writes it today, I’ll take care of it when I get home.”
Iceland got it. Clean house, clear the books of all of the crap, hit bottom first, and then start to grow. Greece blew it as you always want to go BK with resources available to work through the BK process (i.e., hard currencies). Greece let the EU paint them into a corner they could not get out of. Greece sold their soles, allowed the banksters to position their interests in the best assets and rape, pillage, and plunder the country. Greece's strategic blunder was very simple - they believed the banksters from the EU actually cared about the Greeks. Cyprus, same story different names. The moral of the story is simple and in the words of Steve Martin who played Navin R. Johnson in the movie the Jerk (when getting advice from his brother) - "Never Trust Whitey". Or if you prefer - "If you catch it, see a doctor and get rid of it". The greatest con of the century is being played out in convincing this poor countries of the need to stay in the Euro. These poor soles are going to be paying off this debt for the next century.
What does this have to do with Japan - Simple. Japan get's it. Either inflate or default. I'm not saying they are going to be successful but at least they understand the situation they're in and are going all in with the hopes of trying to inflate their way out of this mess. Chances of being successful, slim. But at least they've made a decision to go all in. Nothing else they really can do. Not with the government borrowing 50+% of all annual expenditures. Not with their aging population. Not with a massive transition to fossil fuels from nuclear. Not with neighbors of greater military strenght knocking on their doors.
At some point, a decision has to be made. Iceland made it, Greece and Cyprus did not. Japan is making it. Time to pay the piper, devalue the Yen, and repay their debt (internal) through a massive standard of living decrease to be placed on what's left of their working population. Not a pleasant choice but I give them credit for laying it on the line and being the first out of the real starting line or gate. A harsh reality for a true business owner but then again, only true business people understand what it means to make extremely difficult business decisions in order to save the venture they love and live with every day. At least I give the parties in Japan credit for making a decision and stating plain and simple, it's time to inflate.
Can't say the same for bullshit coming out of the ECB or FED as they sold their soles to the politicians ages ago.
No, Japan doesn't get it. The debt has to be repudiated. It has to go away.
Default makes the debt go away.
Printing paper money makes the debt go away.
What Japan is doing; creating more debt doesn't make the debt go away. Japan has failed miserably every time they've tried this. Want to know why? THEY KEEP CREATING MORE DEBT.
Retarded doesn't begin to describe how stupid this is.
Or rather. I no longer believe this is simple stupidity, Hanlon's razor; Stupidity doesn't adequately explain this, therefore it's malice.
Delivered, True enough Iceland got it. But I disagree with your reasoning about Greece and Japan. Greece's and Japans leaders got told what to do and sold out their citizens. And soles are the part of the shoe that hits the pavement.
So the Greeks, the ECB, and the FED are all walking around with nothing on the bottom of their shoes?!?
Man, that's gotta friggen hurt!
Who's buying all these soles, anyway?
Is there an EFT for that?
New Qe from the BOJ. What a shocker. ES up 5 handles i guess. just wild. http://tradingvix.blogspot.com/2013/04/overnight-boj-meeting.html
Chinese pulp imports are down 20% the last quarter now I know none of you care about pulped tree fibers but it's an indicator of manufacturing because a lot of it goes to make card board boxes and containers. Used to package and ship finished goods in. The latest rumblings from North Korea may be about the Chinese running scared about declining exports and hence jobs and NK is it's proxy.
I love these backdoor ways of exposing what's really going on. Do you have a link to the reported data on the pulp imports? (thanks in advance)
Grow hemp... paper, fiber, rope... renewable...
.
Earthquake?? I am in Tokyo. Didn't notice any. Ok, here it is http://www.jma.go.jp/en/quake/3/20130404135135395-041342.html.
It was a "1" in most parts of Tokyo and only 5.3 Richter. That's not significant. These small quakes happen all the time.
There have been a lot of small shocks around Sanriku recently. When I was living in Tokyo, it looked a lot like that around the 9th March 2011, and two days afterwards I was simulteously running down 26 flights of stairs while crapping my pants.
I wonder if our new treasury secretary will brand them currency manipulators?
I think we need to plaster "Currency manipulators inside" and "Buy Bitcoins!" on all the major banks' windows.
So it's "any JPY5.2tn per month it takes" eh? Those elderly diapers are going to become awfully expensive.
Offshore-Leaks: List of tax evadors
Offshore financial industry leak exposes identities of 1,000s of holders of anonymous wealth from around the world. The names have been unearthed in a novel project by the Washington-based International Consortium of Investigative Journalists [ICIJ], in collaboration with the Guardian and other international media
http://homment.com/offshore-leaks
Investigative journalists actually exist?
Only if you have a username and password.
yeah thats some heizenberg quality straight to the vein. pathetic junkies
Oligarchs of the world unite we have nothing to lose except our Virgin Islands stashed wealth hidden from those "Gestapist Tax collectors!"...
Leaks reveal secrets of the rich who hide cash offshore | UK news | The Guardian
32 T of oligarchy private money and 16 tons of labour and sweat for the 7 billion people of the world!
I think that this a raise to the Bernank..... I think he will see their raise to 75B and raise mine to 125B....... Due to the potential impact of potenital hostilities, in the korean peninsula, Iran, or Detroit.....
Mr Draghi, Mr Draghi.... your bet.....
well good maybe that will bring pm back up
Totally off topic, but do you think that HP and the other printer companies have evil and predatory pricing practices on its inkjet printer refill cartridges? Please see article and survey. I will keep this survey up for one month and then send the results to HP’s CEO and VP of marketing. http://tinyurl.com/cjpvaf7
Gotta say, making over 100% overnight feels good. Wouldn't wanna be the one having all his savings in JPY though, the BoJ is a thief worse than Cypriot politicians.
NIK moved more than 1,000 points in 3 days... WTF!
uh nikkei futures moved almost that much in just a few hours today. definitely a WTF
All this central bank money printing is like pouring gasoline on a pile of wet wood. They pour some gas, light the match it goes out, pour a little more, light, it goes out, and they do this over and over and over until finally they say fuck it, like BOJ just did they pour a whole can of gas on the pile of wet wood. Now when there's a spark-Kafucking-BOOOOOOOOOOOOOOOOOOM!
In the meantime, the sky keeps falling.
UNLEASH FIAT !!!!
The panicky desperation of TPTB just makes their eventual and unavoidable FAILURE that much funnier and sweeter! PRINNNNNNNNNNT!!! PRINNNNNNNNT!!!