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If Japan's "Shock And Awe" QE Happened In The US....
- This is your QE on Bernanke: $85 billion per month or $1 trillion per year.
- This is your QE on Japanese monetary drugs: $200 billion per month or $2.4 trillion per year.
Why? Because the just announced "Shock and Awe" expansion of BOJ monetization takes the total monthly gross purchases to a whopping ¥7 trillion per month, or 80x less than Japan's total GDP of $5.9 trillion. Back in the US, the Fed is monetizing "just" $85 billion per month, or 187x less than US GDP of $15.9 trillion. In other words, if one were to pro-rate the latest Japanese monetization effort to the US, one would get a mind-blowing $200 billion per month and $2.4 trillion per year in pro forma QE every month.
Sadly, we have a sinking feeling, this is precisely the plan, with Japan in the role of the proverbial Canary in the Monetarist Coalmine. If Japan can pull this off for a few months, and when the US realizes it has to do much, much more to reflate the tens of trillions in excess debt, the Federal Reserve will be right there, and the column on the left will promptly become the Pro Forma column on the right.
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CTRL-PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Well like the video from yesterday on Japan's homeless....they are satisfied with crushing cans for a living then crushing their government for putting them homesless in the first place....thats a great place to start this currency devaluation experiment....of course, North Korean may totally fuck up this plan...if they do, I will have to give it to them....at least some Asians have big balls.
In the Mad Max currency road war, someone just hit the nitrous button!
But Lockhart said this morn, the Fed will "curtail" QE?
LOL. Lies, lies, lies....... until this pig blows up - which it most definitely will.
$1.4 trillion in two years (not $2.4 trillion per year)
lets see with that much money coming into the system, they ought to be able to manipulate gold down to $1400.
with a half-life of a few days at most.
All they have to do is press the Zero key once, and one trillion becomes 10 trillion.
I'm giving her all she's got captain!
Doubling of the monetary base to 270 trillion yen by the end of 2014, is equivalent to $1.4 trillion over two years or $700 billion per year (not $2.4 trillion per year).
Overall amount of money created is important (global economy), not hypothetical "if Japan were USA" Kyle Bass nonsense (and I respect Kyle, but his analogy was misleading).
I think they fried Kyle Bass ... btw there was a post i read last month or so that he was betting big...
The Jooz win again.
There should be a sign that says, "Hedge Fund managers are stupider than they appear"
paper gold QE is off the hizook
I get 2,040,000,000,000 over two years, unless I misunderstood.
85 x 24 = 2,040 billion
$200B x 12m = $2.4t How are you getting $1.4t?
$200 billion is a lie (the actual number is closer to ~$60 billion).
I think z'hdge is showing what it would be if done to the same proportion here in the states.
See the first bullet points above:
"This is your QE on Bernanke: $85 billion per month or $1 trillion per year.
This is your QE on Japanese monetary drugs: $200 billion per month or $2.4 trillion per year."
Key phrase, which you'd miss if you only read the bold text: "if one were to pro-rate the latest Japanese monetization effort to the US".
Kuroda targets the monetary base; therefore, you need to consider the amount of cash he pumps out to the economy, ~$60 billion, (not the misleading $200 billion relative to the size of the economy scope used by Bass/ZH).
Keep in mind, Nikkei 225 is already up by ~40% front running this announcement (most of this $60B announced last night is priced in, so the CNBC bulls, and for some reason [most likely because they hold underperforming gold positions] Kyle/ZH, spin it as $200B a month program).
They're illustrating a ratio, dumbass. 7T Yen = $72.8 billion. When compared to the size of their GDP, which about one third of the US, the ratio would be like the US printing $200 billion. More like $218 billion, but whatever.
Paul Krugman and Chuckie the Psycho Doll Schumer say "get to work Ben!".
Unfortunately, a dumbass is you (or at least pretending to be one).
The goal is to double the monetary base (not the economy); therefore, you need to compare apples to apples or monetary base doubling in the US vs monetary base doubling in Japan.
Japan has already done more QEs than the US, and its monetary base is larger relative to its economy than the US. Japan needs to print more relative to its economy size to have the same effect as Bernanke's $85B.
Each subsequent QE is less effective unless you increase the amount printed (two years from now, Japan will need to print $120B a month to have the same effect as current $60B).
In short, using $200 billion analogy without any reference to the monetary base is inaccurate and misleading.
The Fed is like P.Diddy: "Can't Stop. Won't Stop" the QE.
Because they need to print cash not just for the govt to fund it (over bloated) business.......but the CIA, TBTF banks, the Pentagon, and the other pigs at the troft have their hands out waiting for their daily cut (which they've been receiving for the past 12 years).
"The Market" also needs QE - because without it, the DJIA and S&P make no where near the gains it does. The minute a Federal Reserve head even MENTIONS of stopping QE....there is an immediate selloff. I guarantee this is algo-driven (and the muppets follow).
That's where the outrage should be on QE: none of this money is reaching the people. At all. It's all going to hedge/subsidize speculation on housing markets and stock prices.
That is exactly right.
Think about this - in the US if the govt just handed out 85Bil per month rather than prop up the bullshit, any of the following could be accomplished:
400k + homes @ 200k each fully paid for, handed out
4.25 mil people "employed" @ 4k per month salary
Every college student in the US goes for free.
Every single person in the US gets $200+ per month for food
Every family in the US gets free health insurance - no premiums
Purchase 4 million cars @ 20k each per month, hand them out
Reduce tax rates for 80% of the population by 50%
Think about ANY of the above and US GDP - it would rocket the GDP as people would have 85Bil more per month to spend of their own money.
The US citizens need to wake up. This is our money and its being squandered. Anyone who beleives these clowns can "unwind" the positions are fools - impossible. The money all goes to the large banks as free money and designed to prop up the bad bets of all the idiots.
.
That's not your money! Did you create it? You need to review creator-ownership law.
Money which the Fed creates belongs to the Fed shareholders, not to any sheeple.
DEVALUATION; its a currency devaluation in Japan, US next... asset controls.... gold confiscation, etc. and the THE VAT TAX.
do it for....The Children
Fuck yeah! Japan steps up to the plate and knocks it out of the park. Got to keep this game interesting. Currency wars about to go thunderdome-style.
I thought nitro printing was for backwardationations.
A nation whose culture doesn't allow dissent and nobody is armed. The very definition of lemmings.
When Japan goes, so will the US and the West. And if you haven't noticed the inflation in Japan is out there and it's from the QE Japan is doing. The difference with the US is that Japan is a nation of savers and the US is a nation of spenders and credit users.
Bernanke is Zuul, and there is no economy — only Zuul.
I think Japan just crossed the streams.
If someone asks if you are a god -- you say YES
Holy Fuk....ishima
and to think the 150 mile wide toxic dump floating towards canada's shores was bad.....
we...are....crater...ing
Ben, WTF. You need to press P each time yeah, CTRL P then tap, tap, tap. Repeat.
Not IF, When!
Beat me to it.
This is a one way street with no turns off.
Wile E Coyote's cliff at its end.
Moar Billions
Krugman is going to print out that chart, and masturbate to it.
It will be him lying down (with some liberal Photoshopping of the vertical part).
It's playing right now on the WB7 channel in my brain.
Bernanke, you lazy little grub, get to work!
Dr. Bernankenstein to you.
He has created an uncontollable monetary monster.
Long pitchforks ,and torches.
We can do better...lets print $500 billion a month! The world has lost it mind.
I just type 1 then held my zero key for 3 seconds: 1 X 10^80
These guys are pikers!
Sometimes you need a pro for work of the scale they're looking at.
print "1"while true
do
print "0"
done
# prog bernak_a_spank.exe
# All rights reserved
# Main() While true and not pitchforks
while (1 && ! $pitchforks ) {
print "Bend over and spread em.... " ;
if ($success = exec_ctrl_p(200,000,000,000)) {
print "Yeah Bitchez, who's yo daddy!!!!!!" ;
}
# are the crowds coming yet ( check every federal reserve!!!! )
foreach $reserve (%Fed_Reserve_hash) {
if ($pitchforks = check_for_angry_mobs($Fed_Reserve_hash{$reserve})) {
# shit, we found angry mobs...
# $pitchforks is true and exit %Fed_Reserve_hash loop
last ;
}
}
# Are they mad enough yet? ( is pitchforks true? )
if ($pitchforks) {
# Yep, they're pissed. Get the money
# Execute for evey account in bank hash.
foreach $bank ( %bank_accounts ) {
foreach $account (%{ $bank_accounts{$bank}}) {
if ($success = exec_Corzine_manuver($bank,$account))
print "MY MONEY, Bitchez!!!!!!" ;
if ( $success = withdraw_cash($bank,$account)) {
print "MOU-HAHAHAHAHAHAHAHAHAHAHHAH, BITCHEZ" ;
print "I have all of ${bank_accounts{$bank}{$account}{USER}}'s money!!!!!!!" ;
close_account($bank,$account) ;
}
}
}
}
# Ok, I have all the money now... time to go.
exec_call_the_jet_to_GTFO_of_dodge() ;
exec_taunting_with_much_joy() ;
# pitchforks = true so exit.
} # End if $pitchforks... If no pitchforks... CTRL_P!!!!!!!!!!! Loop again!!!!!
}
I raise :
$700bn
mind boggling. sorry kids.
"I learned it by watching you, Japan. I learned it by watching you." Ben Bernanke
Wonder when will ECB join the printing orgy.
The CBers know that when Mario finally capitulates and when his chest pounding is no longer the drug for the Euro, it will unleash the BARBARIC RELIC MONSTER and never look back!
I think they desparately want to, but they structured their union in such a way that it's way the fuck harder to accomplish. Hence the financial sniping.
Plenty 'O' Room 4MOAR!
Pump that bubble bitchez
BOJ begins "super-QE"...
..and Gold goes down..manipulation by the criminals at its finest..
Well, that's because Japanese QE is NOT INFLATIONARY, merely REFLATIONARY.
It is all under control citizens. Focus on the RE, as in wash, rinse, REpeat.
Neither Orwell nor Huxley could have dreamed up this state of affairs.
It's also JPY and not USD.
Hasn't worked for Japan, ain't gonna work here.
It may not be working for us peons, but it's working for the people who matter
All part of the plan by the powers-that-be to steal everything that's not tied down.
Ben Bernanke belives that he has the ability to raise the dead.
Global Weimar stuff, the end of a paper world
So, shall i buy Dow 36K book?
i guess the answer is a resounding "yes"
Screw the book.
Buy the party hats and the Tee Shirts.
Put some umbrellas in those drinky poos. Fait acompli.
Looks like Ben is an amatuer.
Meanwhile EUR/USD has a huge reversal. Stocks ramped up algo/euro style, gold does nothing. Does that thing ever rally?
Just for fun let's assume that EUR/USD rallied on speculation that tomorrow's payroll number is poor. So the algos bought the market because the EUR/USD rallied , and the Euro rallied because the US payrolls might miss. Great, and that's how these crazy dumbass markets work these days!
I posted this exact same thing about 7 hrs ago on BI:
http://www.businessinsider.com/bank-of-japan-announces-monetary-plan-2013-4
TD must be stalking me...
Dude, you are Tyler Durden. Haven't you seen the movie? ;)
Banzai!
I thought the Asians were good at math?
Well at least they can count to 7 trillion
rillion
Can we just end this charade and start cutting checks directly to the citizens?
Free money to deleverage (the smart ones will) or buy cool toys and phone. Just bypass this banker kiting scheme already.
Japan wins!
Yes, and then they start prefunding the purchase of not yet issued Treasuries w/ the PDs, which they use as collateral for the repo, etc.
And the arrow of time will have been conquered.
The race to the bottom has just hit high gear.
Nope. Just got out of 1st.
#bullish toliet paper:
Okay if they crush the Yen what happens to the emerging markets--tailspin?
"Mr. Bernanke, I understand that most Zero Hedge readers would kick you square in the nuts if they met you in a dark alley. Would you care to comment, or is that too hypothetical a scenario for you?"
The smart ones are using that money to GET THE FUCK OUT OF DODGE.
The island is fucked.
There will be trillions of yen and no country to back it up.
$1 million to every person in the U.S. who files a tax return.
Drop in the bucket, and imagine the stimulus.
Why not?
But gas would be $50/gallon. You can't win at that game...
short dollar, long trees
Zerohedge negativity not affecting rational buyers in the US treasury market and stock market. Obviously, the Euro is fine as it has climbed significantly today. Zerohedge hates to see things not make money. It will eventually right but all the negativity is draining and a waste of time. When it is right, then what? Nothing. And ZeroHedge can't accurately predict when it ends because they do not decide. No different than FOX or CNN. Just closer to the truth but still no help.
I hope they archive this shit so I can teach my kids from ZH instead of some history book. ZH is more important in a historical contect than it will ever be as a market mover.
Deep!
http://www.zerohedge.com/archive
Need a better search. ;)
Not a trading site, sans the occasional obvious divergence.
What is Hayman/Bass take on all of this?
Who is to say this isn't going to be used to buy US debt too.
http://silverdoctors.com/kyle-bass-on-%C2%A51-quadrillion-in-debt-the-ja...
And people laughed when I said the Bernank wasn't going full printard...
If my matfs is correct, 85 Billion a month is a tidy $283 per every person in America, which, if your a bank, can be leveraged into $11,000 pretty easy (x40). I'll be more impressed when the "stimulas cards" are released.
The trouble is that doing so requires lending, and there's not enough people to lend it all out to.
Mothman vs Godzilla
ETA: ROR! Ret the currency war begin!
Dirty Abe: I know what you’re thinking, Ben. You’re thinking “did he print six times or only five?” Now to tell you the truth I forgot myself in all this excitement. But being this is a .44 Magnum, the most powerful printer in the world and will blow your balance sheet clean off, you’ve gotta ask yourself a question: “Do I feel lucky?” Well, do ya, punk?”
Ben, The Nightprinter: I'm an ink-jetted suicide machine! I am a rocker, I am a roller, I am an out-of-controller!
Ben: Hey, I gots to know!
This should get food and gasoline prices higher? Not so because banksters have learned how to find missing bad debt holes for all newly available funds. The Goldman Sach and the JP Morgue shuffle it through their hoarders corners on the way to the ever increasing black hole of the fiat abyss. Makes me feel as though I'm the space between the particles of who I used to be. They are vaporizing reality. Somebody call the police.
My currency charts went all WTF? for a while there.
This is simply amazing - I wonder what this does to the Japanese national debt? This will truly never be paid back - Japan is a dying society with the lowest replacement rate in the world, they are dooming the few children that will make up the next several generations to a life of pure servitude. Pathetic.
Now calm down. You don't see Greenpeace going around asking dinosaurs to reduce their carbon footprints.
Well the question is at the end of it. Will it matter?
If the BOJ owns all the JGBs in existence then it really doesn't matter how many of them there are, now does it?
The economy will be a smoking ruin but the national debt won't be a problem.
hhmmmm, the Prime Minister of Japan or Japans Diet takes out trillion dollar life insurance on all retireees. 20 years from now after all the policies pay off Japan is still 400 Quadrillion dollars in debt, but, they can still say they managed to cut the deficit.
On a separate note, how close are we to using actual Monopoly money? There is absolutely no difference between fiat and Monoply money - none.
Monopoly money is much more respectable.
Monopoly money is more colorful. Unles you are blind, then fiat and toliet paper look the same. Ooooh, I get it Benakass is color blind.
I wish I was the inventor of the zero with a patent/copyright on it. The only problem I foresee is that one day everything will be reduced to a single zero.
one day everything will be reduced to a single zero.....a singularity, from whence cometh the Big Bang. After that, we all will be in a new universe.
If 'Chair Satan' started printing $200bb a month, food and fuel prices would go parabolic! Japan can buy all the shit she wants, but that isn't going to make people (the consumer) buy any more. They will buy less because of commodity inflation. This house of cards is getting closer and closer to the point of no return, at an exponential rate.
Japan is going to hit the same wall we are hitting in the U.S. Their equity markets will out perform but their purchasing power will be eroded. I can't imagine what what the consumer in Japan must be feeling, watching their worthless currency become even more worthless. Let the currency wars begin Bitches...
Erm... Japan has had 20 years of deflation.
The currency war is the cover story they have craved for two decades.
And your point is? Are you saying that commodity prices are going down in Japan?
If Japan wanted a currency war they would have just bypassed the G-20 and said f-off you to everyone and printed yen. Japan wants a weaker yen via an asset purchase scheme. The last thing Japan wants is a 'currency war'. It's self defeating as everyone else devalues their currencies and renders your devaluation scheme moot.
translate this into per citizen or in relation to GNP and it will be even better ... oh wait don't use that worthless north american nation as a benchmark and it will be even more obvious
Before the final implosion, I suspect that Ben or his successor will be pumping $1Trillion per month to keep the ponzi alive, LMAO.
Government is buying everything with printed money, evil geniusses. Communism won after all.
Whatever the question, CTRL-P is the answer. If at first you don't succeed, press harder while superglueing the buttons down.
Kyle Bass on this:
Kyle Bass: Japan About to 'Implode' Under Debt
http://video.cnbc.com/gallery/?play=1&video=3000159028
As he's been saying for years, Japan is toast. It'll be interesting to see what triggers the mother of all worldwide crashes first, Japan or the EU.
Uhhh, why does it have to be Japan or the EU? Why is the USA off the table?
I say it will be us, because this country has no character, no values, no morals and is riddled with EPIC FRAUD!
This is nuclear QE! As Marc Faber said, "They will print and print and print. Printing is all the central banks know how to do, so they will print"!
This experiment in printing your economy back to wealth creation is going to fall flat on it's fucking face. When has this ever worked? Never!
but, but, but MOAR is supposed to work
Santelli and El Arian: mainstream style
http://www.cnbc.com/id/100616800
Isn't this called the wealth effect?
Or is it the "wealth of nations"?
I know it's something like that.
FORWARD!!
Hello all!
I wanted to say thanks to all that contribute on here.
Alot of the financial stuff flies over my head and the comments help me decypher it.
Also, I wanted to thank the owner of the site for posting things before I can hear about it weeks later elsewhere.
Me too, Mydog. This is the best news you can get anywhere, and when I (frequently) don't understand I just let the hysterically funny smart doods explain it to me via the comments. Apparently the secret of the universe has something to do with bitchez and btfd, still trying to understand. . .
That goes for me too.
japan will pay it off with bitcoins.
If --> When
if .gov prints all the money it needs through a bank it controls then it can keep interest rates at zero for as long as it wants as long as the debt is internal. the structure of the boj and the debt says japan can do this a lot longer than bernanke and the fed can with usa debt despite the dollar privilege as the reserve currency.
besides the real atomic bomb will be the quadrillion yen coin to make it all go away and the trillion dollar reserve to cushion the impact when the dollar mementarily goes to the moon as a result.
Let's do some math. 85B per month is the same as 42.5M x 2,000 per month.
This means they are doing the equivalent of creating 42.5 million minimum wage jobs. And yet, unemployment is going up, not down. Why, because that money isn't going to create jobs, it's going to line the pockets of a few old stodgy white men.
Wrong! Your math needs some work. Someone making the current $7.25 minimum wage, working a full 40 hour week (not that common) would only make $15,080 per year, or about $1,257 a month! Thus, the $85B a month would be good for 67.6 Million of those jobs, pretty much wiping out the unemployment problem. Of course, in the real world, it doesn't work that way as inflation would go nuts with everyone "working" (not that much is ever actually getting done)...........
Isn't our government taking on about $6 trillion a year in new debt obligations. It's working isn't it?
So Japan just devalued without renaming the currency and changing the faces on the bills? It's 1930s devaluation deju vu all over again time?
Wow! Japan is going to print Y140tn over the next two years - doubling its monetary base.
Its debt is 20 times its tax revenue. No wonder Kyle Bass is telling people to take their money out of the bank and buy foreign assets.
They also doubled consumption taxes - so the money transfer is from retail idiots to bankers. Hopefully some people will be dangling from lamp posts before too long.
For a few months, we'll all have a 60" Sony flat screen for $69.99, tra-la-la-la!!!
Then, in a few more, we'll be paying $18,675.00 for a Diet Coke!!
BULLISH!!!!! Green close tomorrow!!!!
what does this do to overall money velocity?
What does this mean for inflation?
Biflation chimes; those commodities that move up and those others like currency whose value moves down...fast, so fast, bottom will feel bottomless.
There is no amount they can QE to fill that hole. The more they play this stupid game, the worse it gets.
If Ben is stupid enough to increase QE because of what japan does.... NM he is that stupid.... We need more MBS's because the fed is running out of MBS's to buy, Q Obama, we need sub prime back!