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.