Bank Of Japan Head:"No Bubble Here" As Nikkei Rises 45% In 2013

Tyler Durden's picture

Take a good look at the chart of the Nikkei below:

Supposedly this is the same chart that the new BOJ head, Haruhiko Kuroda, was looking at when he was responding to Japanese lawmakers during a session of the upper-house budget committee, where he flatly rejected an opposition-party member's argument that the recent rapid rise in the Tokyo stock market is out of line with Japan's real economy. "At this moment I do not think they are in a bubble," Kuroda said. And everyone believes him, just Because central bankers are so good at objectively observing how contained subrpime is big the asset bubbles their ruinous policies create.

Incidentally, all this happens as the Nikkei225 closed at 15096, and is up 45% in 2013 alone! It will easily surpass the Dow Jones Industrial Average in absolute terms once tonight's trading session begins, considering the ongoing pounding the Yen is sustaining in today's session. From the WSJ:

Mr. Kuroda also countered the view that higher import prices as the result of a weaker yen could throw Japan's economy into growth-harming "cost-push" inflation—inflation driving by rising costs, in contrast to "demand-pull" inflation.


"If the prices of imports were the only thing rising, and if there were no narrowing in the output gap and if there were no rises in expectations for general price gains, we would see cost-push inflation," Mr. Kuroda said. "But the reality we are seeing is different. The output gap is decreasing, and inflation expectations are growing."

He's right, but only if one ignores the recent price hikes in food, luxury goods, energy costs, electronic equipment and all that "other stuff" profiled here previously. Then again, ignoring "other stuff" is something Japan is very good at: especially when it is measured in sieverts, roentgens and curies.

Finally, the following confirms that the BOJ will not stop its concerted effort to eradicate the Japanese middle class in order for Goldman's partners to get record bonuses in 2013:

Mr. Kuroda's latest remarks add to signs that the BOJ sees nothing in recent market developments to make it want to slow its monetary loosening, which aims to eradicate deflation—indeed, produce a 2% inflation rate—within two years by doubling the amount of money in Japan's financial system. Lawmakers Wednesday didn't ask Mr. Kuroda about climbing yields on Japan's government debt, but he told a news conference over the weekend that he expects no jumps in yield for the time being

See? No need to panic. Kuroda said so.

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Haus-Targaryen's picture

What does everyone think ... time to sell Gold and buy into the Nikkei and S&P? 

King_of_simpletons's picture

"No bubble here" is always the theme until it bursts.

There won't be any bubble until the last of mom and pop jumps in and loses everything. That 's how it works.

Haus-Targaryen's picture

How much higher can this bitch go before the IIs start booking profits? 

SmallerGovNow2's picture

Exactly.  Keep hearing from the market shills how they are making money hand over fist.  I say you ain't made nothing because no on is booking profits.  If they were you would see some corrections and sell offs.  but with 85 billion per month from uncle ben, this is a one way rocket ship...

DormRoom's picture

There's been 3 bubbles over the last 10 years.  It's caused an anchoring bias in which people expect 20% return yOy. It's obviously a bubble, but they must reflate, or its game over, because there is no plan B in a liquidity trap.  Moreover, Japan doesn't have much hard assets to fix its currency once the Great Reset happens.  The US has 8000 tonnes of gold to fix to a new currency after the Great Reset when the greenback is replaced.

TeamDepends's picture

8000 tonnes of gold?  You sure about that?

malikai's picture

Posession is the rule when the derivatives die.

NidStyles's picture

Lack of aggregate demand is not a liquidity trap. It's 100% pure an simple an escape issue with the currency losing value so everyone dumps it into assets that might hold or increase in value thanks to the increase of net flow. Aggregates are for simpletons and Keynesians.

Burt Gummer's picture

I took a cab home from the bar the other night, the cabbie was telling me how he was heavily invested in the Nikkei and that if I want to make some easy money I should buy Nikkei index futures.

Lets Buy The Dip's picture

wow nice post. The NIKKEI looks like it took 3 viagras for breakfast. WOW. haha. 

Anyone see the stats, => WE HAVE NOT HAD A CORRECTION ON S&P 500 FOR 177 DAYS NOW!

I am ashamed to be an americant when we have people like bernanke who get on all fours, with a gimp ball in his mouth, and take orders from the elite. The dirty scums. 

What is this world coming too.???

fonzannoon's picture

"It will easily surpass the Dow Jones Industrial Average in absolute terms once tonight's trading session begins"

Hey Kevin, you gonna take that shit????

Get em!!!!

thismarketisrigged's picture

yup no bubble, lol.


it took the u.s market from its lows in march of 09 until 2013 to reach its pre crisis levels, a 150 percent jump took 4 years.


if japan continues on there pace, they will take less than a year to gain 150 percent. ya but no bubble to see here.


its normal for a market to move 2-3 percent daily on no news

NeedleDickTheBugFucker's picture

Yes, just keep extrapolating those 45% returns over five months.  Nikkei 30,000 by 12/31/13.

the not so mighty maximiza's picture

this chart like all the other ones lately are just showing and reflecting goverment money creation levels, that is it.


Yen Cross's picture

  OT major misses on the U.S> macro news.

   05:30       USD             NY Empire State Manufacturing Index     -1.4     4.0     3.1      
   05:30       USD             PPI (MoM)     -0.7%     -0.6%     -0.6%      
   05:30       USD             PPI (YoY)     0.6%     0.8%     1.1

All_Is_Well's picture

It's all just make-believe.....

freet0pian's picture

Woah dude you've got my metrics in your matrix!








new game's picture

dude, it is all f..'g bull shit, no less. i see g and s being sold again.

paper g and s take down to keep the only thing they got; false faith in a system base on dollar(demise) and they are getting a tad desparate(sarc).

but there is hope - green shots everywhere-spring has sprung eternal :-)

dollar getting a tad strong-gotta get that talked down soon - calling ben - what cha gonna do - dirty that shirt a little more - rugby anyone?

TumblingDice's picture

No jump in yields for the time being. No bubble in the stock market. These are not the droids you're looking for.

Yen Cross's picture

   Nikkei CFDs trading within 20 points of the dow now. No bubbles here Kuroda, you F**king tool!

Japan NI225    [15169.00]    15096.03    15226.00    15066.00    72.97    0.48%    12:39:28

venturen's picture

Do Central Bankers get paid based on how high they can get their stock market? I guess building bubble ensures job security and a massive printing press.

marz929's picture

Once again, ZH guys appear to be missing or just want to miss the proverbial boat. Some of you guys, and I paraphrase from that memorable quote in "Rocky," "Some guys just hate."

As I have posted in the past, I'm not missing this "gift" the way I missed the S&P move from March 2009 because I succumbed to the malaise that infects every aspect of this Board to the detriment of everyone's wealth. Ignore the move in the Nikkei, if you must, but don't be too churlish about those who are not kicking this gift horse in the mouth. JMHO

espirit's picture

Critical Thinking 101

The more you play, the more you pay.

JMHO you're a tool.

orangedrinkandchips's picture

"Nobody move...nobody gets hurt.....BOOM!" NWA

orangedrinkandchips's picture

Let's see...bad data....NOW we see The Fed putting a floor under the SP.


Like the sun coming up everyday....



q99x2's picture

Give the leaders of the world their own country. And don't let them out.

WhiteNight123129's picture

Given the amount of printing and the historical level of Nikkei, Nikkei has to rise more not less.


Quinvarius's picture

Anything but paper money in a currency crisis.

Quinvarius's picture

This from the country that brought you the Kamakazi.

Monedas's picture

This what Hope feels like .... the Change is a coming soon !

moneybots's picture

Central bankers are liars.

They trynna catch me ridin dirty's picture

Japan just needs to stop being so difficult and just do what the internationalist hyenas want it to do: sign free trade agreements with everyone so as to destroy its domestic manufacturing and open its borders to hordes of third world immigrants.

Doesn't Japan see the wonderful results this approach has produced for Europe and the United States?

dolph9's picture

Japan is a major importer of energy and their population is slowly declining.  There is no possible way the stock market can continue to rise unless the currency is completely debased.

What's wrong with people?  What is this obsession with stocks?  I cannot think of a single thing improved in this world if stocks are inflated.

SmallerGovNow2's picture

Tyler, would love to see a chart of gold priced in yen over this same time period....

falak pema's picture

nikkei rise = yen demise. Its all part of print to infin of Abenomics.

Now we have so many 3D printers at work around the world doing God's (oups, I mean Oligarchy's) work! 

The only question is what will yuan, USD and Euro do to compensate and will it run into trade war?

MeelionDollerBogus's picture

And in unrelated news, Leprechauns around the world (naturally primarily in Ireland) are turning in their lucky charms & pagan gold for Yen and Japanese stocks and converting to Shintoism