• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

BoJ Unveils 'Shock-And-Awe' Quantitative-Qualitative Easing

Tyler Durden's picture




 

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?

 

BoJ

Charts: Bloomberg

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Thu, 04/04/2013 - 08:04 | 3407299 Pegasus Muse
Pegasus Muse's picture

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.

Thu, 04/04/2013 - 01:12 | 3406922 bigwavedave
bigwavedave's picture

Thats $750 Billion US Fiat per month folks! 

Thu, 04/04/2013 - 01:17 | 3406937 rcintc
rcintc's picture

Misplaced a zero there big d.

$75 Billion per month....pikers compared to the US Fed.

Thu, 04/04/2013 - 01:23 | 3406947 lolmao500
lolmao500's picture

Pikers? When their economy is a third of the US? Lulz.

Thu, 04/04/2013 - 01:37 | 3406968 Yamaha
Yamaha's picture

Hard to do math with shaking boobs......carry on.

Thu, 04/04/2013 - 04:47 | 3407124 malikai
malikai's picture

Our USDJPY model's performance.

http://blog.quantsig.net/2013/04/04/usdjpypost-boj/

Thu, 04/04/2013 - 05:50 | 3407148 Scarlett
Scarlett's picture

84,000,000,000,000.00 per year.  No hyperinflation, nothing to see there...

Thu, 04/04/2013 - 06:06 | 3407155 new game
new game's picture

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?

Thu, 04/04/2013 - 06:10 | 3407161 new game
new game's picture

mideast=decent to chaos...

Thu, 04/04/2013 - 01:17 | 3406939 Edward Fiatski
Edward Fiatski's picture

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.

Thu, 04/04/2013 - 02:11 | 3407011 Bunga Bunga
Bunga Bunga's picture

Too much toilet paper can clog the sewer line.

Thu, 04/04/2013 - 07:16 | 3407249 firstdivision
firstdivision's picture

Well I believe the OP will be redeemed on his maths come 6 months when they have to do $730B/Mo.

Thu, 04/04/2013 - 01:18 | 3406941 suteibu
suteibu's picture

More like $75 billion, but still substantial based on % of GDP and when compared to the Fed.

Thu, 04/04/2013 - 04:13 | 3407102 sodbuster
sodbuster's picture

$750 billion per month!!!???? You just gave Krugman an instant hard-on.

Thu, 04/04/2013 - 01:13 | 3406927 FieldingMellish
FieldingMellish's picture

Ctrl-p is the answer. What was the question?

Thu, 04/04/2013 - 01:16 | 3406933 myne
myne's picture

CTRL-A

Thu, 04/04/2013 - 05:46 | 3407147 Scarlett
Scarlett's picture

CTRL-ALT-DEL

Thu, 04/04/2013 - 07:17 | 3407252 firstdivision
firstdivision's picture

Up-up-down-down-left-right-left-right-A-B-B-A

Thu, 04/04/2013 - 08:04 | 3407319 Lets_Eat_Ben
Lets_Eat_Ben's picture

"Up-up-down-down-left-right-left-right-A-B-B-A"....select start!

Thu, 04/04/2013 - 01:16 | 3406930 Kirk2NCC1701
Kirk2NCC1701's picture

I think the BOJ is Going Japanese, I really think so.

Thu, 04/04/2013 - 02:13 | 3407012 Bunga Bunga
Bunga Bunga's picture

Haven't they tried it for the last 20 years?

Thu, 04/04/2013 - 08:00 | 3407311 pods
pods's picture

But this time is different. 

pods

Thu, 04/04/2013 - 01:16 | 3406931 sharky2003
sharky2003's picture

And gold rallies $3. WTF. I'm starting to think someone, somewhere is in trouble and is liquiding it all...

Thu, 04/04/2013 - 06:51 | 3407205 Panafrican Funk...
Panafrican Funktron Robot's picture

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.

Thu, 04/04/2013 - 01:17 | 3406932 sandiegoman
sandiegoman's picture

Yeah but how many bit coins is it?

Thu, 04/04/2013 - 01:16 | 3406934 chump666
chump666's picture

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.  

Thu, 04/04/2013 - 01:21 | 3406943 Edward Fiatski
Edward Fiatski's picture

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.

Thu, 04/04/2013 - 02:00 | 3407002 Non Passaran
Non Passaran's picture

your comment doesn't make any sense.

Thu, 04/04/2013 - 02:08 | 3407008 Edward Fiatski
Edward Fiatski's picture

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.

Thu, 04/04/2013 - 04:55 | 3407127 Western
Western's picture

maybe they can start with you?

 

you seem to know the future quite well, care to share your secrets..

Thu, 04/04/2013 - 06:53 | 3407207 Panafrican Funk...
Panafrican Funktron Robot's picture

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.

Thu, 04/04/2013 - 02:18 | 3407019 chump666
chump666's picture

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.

 

 

Thu, 04/04/2013 - 02:30 | 3407031 Edward Fiatski
Edward Fiatski's picture

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.

Thu, 04/04/2013 - 03:18 | 3407071 Seer
Seer's picture

I'm thinking that the economy is already beyond repair.

Thu, 04/04/2013 - 01:17 | 3406936 salvadordaly
salvadordaly's picture

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!

Thu, 04/04/2013 - 01:50 | 3406987 Yamaha
Yamaha's picture

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?

Thu, 04/04/2013 - 01:17 | 3406938 Poor Grogman
Poor Grogman's picture

Be careful what you wish for, you just might get it...

Thu, 04/04/2013 - 01:19 | 3406940 Curt W
Curt W's picture

When the hole gets too deep, dig faster. 

 All central bankers were cast from the same mold.

Thu, 04/04/2013 - 03:18 | 3407072 Seer
Seer's picture

When growth is the problem, MOAR growth "has" to be the way out!

Thu, 04/04/2013 - 01:22 | 3406944 lolmao500
lolmao500's picture

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?

Thu, 04/04/2013 - 01:33 | 3406960 HulkHogan
HulkHogan's picture

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.

Thu, 04/04/2013 - 01:40 | 3406962 lolmao500
lolmao500's picture

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.

Thu, 04/04/2013 - 01:52 | 3406988 prains
prains's picture

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.

Thu, 04/04/2013 - 05:21 | 3407140 Zwelgje
Zwelgje's picture

you are broke.

Thu, 04/04/2013 - 01:54 | 3406989 FinalCollapse
FinalCollapse's picture

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.

Thu, 04/04/2013 - 01:56 | 3406994 prains
prains's picture

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?

Thu, 04/04/2013 - 02:03 | 3406999 lolmao500
lolmao500's picture

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.

Thu, 04/04/2013 - 02:27 | 3407005 prains
prains's picture

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

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