If Japan's "Shock And Awe" QE Happened In The US....

Tyler Durden's picture
  • 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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Shizzmoney's picture


Divided States of America's picture

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.

redpill's picture

In the Mad Max currency road war, someone just hit the nitrous button!

nope-1004's picture

But Lockhart said this morn, the Fed will "curtail" QE?

LOL.  Lies, lies, lies.......  until this pig blows up - which it most definitely will.


Cult_of_Reason's picture

$1.4 trillion in two years (not $2.4 trillion per year)

Stuart's picture

lets see with that much money coming into the system, they ought to be able to manipulate gold down to $1400.


centerline's picture

with a half-life of a few days at most.

Beam Me Up Scotty's picture

All they have to do is press the Zero key once, and one trillion becomes 10 trillion.

Hobbleknee's picture

I'm giving her all she's got captain!

Cult_of_Reason's picture

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).


resurger's picture

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.

Shizzmoney's picture

There should be a sign that says, "Hedge Fund managers are stupider than they appear"

silverserfer's picture

paper gold QE is off the hizook

MsCreant's picture

I get 2,040,000,000,000 over two years, unless I misunderstood.

85 x 24 = 2,040 billion

Citxmech's picture

$200B x 12m = $2.4t  How are you getting $1.4t?

Cult_of_Reason's picture

$200 billion is a lie (the actual number is closer to ~$60 billion).

redguard's picture

I think z'hdge is showing what it would be if done to the same proportion here in the states.

Citxmech's picture

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."

Nick Jihad's picture

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".

Cult_of_Reason's picture

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).

Overfed's picture

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!".

Cult_of_Reason's picture

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.

Shizzmoney's picture

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.

WTF_247's picture

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.


TPTB_r_TBTF's picture



This is our money


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.

Atlantis Consigliore's picture

DEVALUATION;  its a currency devaluation in Japan,   US next... asset controls....   gold confiscation, etc. and the THE VAT TAX.  

do it for....The Children

centerline's picture

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.

resurger's picture

I thought nitro printing was for backwardationations.


aerojet's picture

A nation whose culture doesn't allow dissent and nobody is armed.  The very definition of lemmings.

Buck Johnson's picture

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. 

McMolotov's picture

Bernanke is Zuul, and there is no economy — only Zuul.

redpill's picture

I think Japan just crossed the streams.

Dr. Venkman's picture

If someone asks if you are a god -- you say YES

prains's picture

Holy Fuk....ishima

and to think the 150 mile wide toxic dump floating towards canada's shores was bad.....



dark_star's picture

Ben, WTF.  You need to press P each time yeah, CTRL P then tap, tap, tap.  Repeat.

Winston Churchill's picture

Beat me to it.

This is a one way street with no turns off.

Wile E Coyote's cliff at its end.

Vashta Nerada's picture

Krugman is going to print out that chart, and masturbate to it.

ParkAveFlasher's picture

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.


Schmuck Raker's picture

Bernanke, you lazy little grub, get to work!

Winston Churchill's picture

Dr. Bernankenstein to you.

He has created an uncontollable monetary monster.

Long pitchforks ,and torches.

venturen's picture

We can do better...lets print $500 billion a month! The world has lost it mind.

Bastiat's picture

I just type 1 then held my zero key for 3 seconds:  1 X 10^80

These guys are pikers!

css1971's picture

Sometimes you need a pro for work of the scale they're looking at.

print "1"

while true


print "0"

whirling tword freedom's picture




# 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 "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!!!!!


onewayticket2's picture

mind boggling.  sorry kids. 

Dr. Richard Head's picture

"I learned it by watching you, Japan.  I learned it by watching you."  Ben Bernanke

kaiten's picture

Wonder when will ECB join the printing orgy.