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Abe's "Deflation-Monster"-Slaying Third-Arrow Hints Underwhelm
UPDATE 2: Nikkei 225 touches 13,000 - down 750 from Abe highs (12,815 is 20% correction from highs)
UPDATE 1: Well that escalated quickly... Abe Speech ended- NKY -450 from Abe spike highs, TOPIX -3% from Abe spike highs, JPY cracked back under 100 (80 pips from Abe spike), JGBs surging
For about 2 minutes there it looked as if we were back on track and by the power of jawbone alone, Abe could lift Japan from its malaise.
- *ABE VOWS TO SLAY DEFLATION MONSTER WITH FISCAL, MONETARY POLICY
- *ABE CALLS GROWTH STRATEGY CENTERPIECE OF ECONOMIC POLICY
- *ABE WILL THOROUGHLY REMOVE ALL BARRIERS TO CORPORATE ACTIVITY
But a mere 10 minutes after vowing to slay the deflation monster, Japanese stocks have retraced their spike gains and JPY has retraced its spike lower - but on the bright side - JGBs are bid.
Can you spot the moment Abe started speaking?
and Nikkei not doing so well now - having retraced the entire jump...
Abe has finished speaking - time to survey the damage:
Which brings to mind this very brief clip:
Charts: Bloomberg
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Maybe,by the end of June,people will wish that they had "sold in May and gone away".
Sold in may describes a girl I once knew.
I should not have ridden that pony...
OFFICAL RULES OF MONOPOLY: - "The Bank never “goes broke.”"
http://www.hasbro.com/common/instruct/monins.pdf
When I was a young kid, my brother and me LOVED TO PLAY MONOPOLY.
Like addicts!! We could play the same game for 2 weeks!
But mostly, after day 1 or 2... the bank ran out of money....
SO I PRINTED MONEY WITH MY COMPUTER!
10 YEARS OLD AND I WAS A FED CHAIRMAN WITHOUT KNOWING!!!
But than we did have inflation in the game...
so... WE ALLOWED MORE HOUSE TO BE BUILD WITH LEGO BRICKS
and than we needed calculators to calculate every move on every place because it got so damn complicated.
The game always ended in the same manner. A fight.
SD - your too damn funny! Perfect!
I stopped playing Monopoly because of the fist fights. We'd go out and play hockey afterwards as a "cool down."
hahahaha!
nice analogy .. so true man!
They couldnt even slay godzilla... How do they expect to slay the Deflation Monster?
Speaking of which... has there ever been a flick that's spawned as many b-movie abominations as Godzilla? I mean, Mothra? The Smog Monster? oy.
Friends?
Come on -- everyone knows that Godzilla became a friend of the island nation after he got over his initial sleep easing. He especially liked the deflated two Japanese girls. It was only later, after he tired of the inflation of other monsters, that he turned once again on the people.
They've got to print moar. LOTS moar if they want sufficient firepower.
When the U.S.A. last had a leader by the name of Abe, he killed a million of his own people
for the benefit of a few wealthy scumbags and history treats him as hero.
Actually he was treated as a prophet ironically enough. And I mean "the real deal." you see Zorba back then we had a thing in America called chattel slavery...a Greek invention as I recall. And THAT Abe said "you are now emancipated." If you wish to say that means nothing by all means do.
Im just curious, Any of you history buffs know how many countries had to go to war to end slavery?
"if you were a slave" I should have added. Sorry. "we're all slaves now" of course. How many go to war to end slavery? Well...the North always did claim it was attacked first.
It's easy to free the slaves of your enemy. Harder to free the slaves of your allies, it seems.
On ZH EVERYONE frome Charlemagne to Lincoln is consipiring with investment bankers! Who knew that the cause of the Civil War, WW1, WW2, Revolutionary War and maybe the War of the Roses was to help a few rich folks (which, by the way, they didn't since massive amounts of capital were destroyed). The Civil War chose the course of the nation - a sleepy, slave-holding, "gentlemen's" South or a industrial, educated North. As someone whose ancestors were divided (TN split in half) I'm glad the North won. Otherwise we'd be another Mexico of land peasants and "gentleman farmers".
What, did you think bankers WEREN'T attached at the hip to politicians?
Whoever won the Civil War, we lost. The North's victory was good in that it cleared away the immediate and terrible sin of slavery, but it also sowed the seeds of universal slavery, which took some 40 plus years to germinate, and has now grown into a mighty tree, festively decorated with invisible chains attached to every man, woman, and child in the US, and numerous abroad.
Slavery was a system that simply couldn't work. It would have been abandoned in due time, without the need for bloodshed, as it was in so many other places, due simply to economic forces. But that would have been little consolation to the enslaved who would have otherwise been free.
Foolish are those who believe they have a right to control others, north or south.
I used to be a central banker like you then I took an arrow in the knee.
Do we take out 13,000 tonight?
Hit low of 1304.
Picture is worth a thousand words.
Can you spot the moment Abe started speaking?
I don't know which one of you Tyler's comes up with the deadpan lines, but that is one of the funniest ones yet. +17Trillion
If somebody walked up to me on the street and handed me $1 million, it would be a very good day.
If I then walked into a store and saw a gallon of milk priced at $100k, I'd go oh shit, guess its not a good day after all.
Sooner or later Abe loses control. Either the Japanese see hyperinflation, or they simply refuse to play the game and nothing will sell, leading to the deflation Abe is trying to prevent. The Japanese will hoard cash long before they will spend. You can't change the attitudes of the elder Japanese and the young have nothing, so they can't spend.
Outside of the few wealthy Japanese I know, the rest make American tightwads look like the Obamas on vacation.
Double down till the casino goes broke! I'm sure that's gonna work! NOT!
I've been betting on red for a while and I'm losing my ass. Seems the wheel hits green 00 every time.
So Abe is going to wipe out worker protections, create a society of temp workers, AND raise per capita wages 3% a year?
Right....but of course, he already knows that, and is just courting his huge base of retirees who are more than willing to sell the countrys youth down the kawa.
Looks like a debt-financed, centrally-planned, cartelized economy doesn't work. Looking at you Japan.
Cyprus by another name. "the list grows." Unrestrained global capital flows and it's malcontents tis long indeed. "just piles debt upon debt...and ages society." we all know the answer--it's written right on the dollar bill: novus ordo seclorum.
I used to say hurry up and buy; but now it's just hurry up and die!
JGBs bid? Japan ain't buying their own bonds after their slap:
Meiji Yasuda Says Foreign Bond Buying Outpacing Japan Bond Purchases
Dance for me baby.
This one takes the cake though, not Japan, just a subtle side-swipe. Will we ever learn?
http://www.dw.de/china-nudges-us-out-of-iraqi-oil-boom/a-16856443
So what? Real economics don't matter anymore, just posturing that media greedy for access is all to willing sell.
It's Pepto Bismol time...
Who is making the stick save now?
That guy is so full of crap he has to wear diapers. He said he was going to devalue the Yen and instead he keeps raising it. He can't print worth a shit. He should have outsourced that operation to Harvard.
A very excellent puke into the close!
Isn't the fact that he can't crap properly the reason why he resigned in the first place?
Perfectly normal. 20% drops are the new "minor correction."
Is this what is called a Musashi omen?
she is at the bottom of Leyte Gulf.
Nikkei won't drop below 13000. Otherwise that one idol group will have to start wearing longer skirts.
At one point it broke through to 12929.
Now Abe needs to scream like http://www.youtube.com/watch?v=XCG_ETMZvyg , then deflation will be totally scared and flee.
Bernanke should head the Japanese central bank after his FED term is over... he can fix this!
/or so he probably believes
Japanese aren't gibbering nitwits.
Gibbering nitwits are essential for Keynesianism to function.
Bernanke should have advised Abe of the necessity of a copious supply of the active ingredient of Keynesianism.
CNBC could be Japan's saviour.
"too big to fail" bitchez.
Deflation is way better than inflation, consumer wise.
So much for ``civil rights`` in our ally country Turkey...
http://www.channelnewsasia.com/news/world/turkey-police-detain-protester...
Turkey police detain protesters over 'libellous' tweetsTurkey police detained at least 25 people early on Wednesday in the western city of Izmir for tweeting 'misinformation,' state-run Anatolia news agency reported, as anti-government protests raged for a sixth day across the country.
They were still searching for at least a dozen others for their tweets which the police said contained "misleading and libellous information," according to the agency.
Ali Engin, a local official for the main opposition Republican People's Party (CHP), told Anatolia that the suspects were being held for "calling on people to protest".
http://www.stuff.co.nz/technology/digital-living/8759518/Turkeys-PM-tags...
Turkey's PM tags Twitter 'menace to society'Now he's scared uh... what happens if Erdogan starts killing protesters?? Turkey turning into Syria-style civil war would be real, real, real bullish right?? Maybe Russia ought to fuck with NATO and start a Russian funded revolt there...
Since when has debt created lasting prosperity?
Funny that Bloomberg hasn't put up an article re the Abe's speech, and the Nikkei's fall.
I guess they're understaffed.
/sarc
Looks like Abe has picked a fight with a pretty tough windmill...
(I'm betting on the windmill)
It's like shooting fish in a barrel.
http://blog.quantsig.net/2013/06/05/eurjpy-3/
If I speak in the tongues[a] of men or of central bankers, but do not print yen, I am only a resounding gong or a clanging cymbal. 2 If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but do not print giant stacks of cash, I am nothing... [1 Tokyoinians Chapter 13]
1. Didn't Big Bubble Ben Bernanke use to work for BOJ?
2. Japan is buying Japanese government bonds instead of US TReasuries. They're also not buying AUD. I'm wondering how China will react to it.
3. What "deflation" exists when a cup of coffee costs $12 in Tokyo?
4. removing corporate barriers = good. As long as he's not doing it to gouge Japanese citizens for the benefit of Goldman Sachs.
Of course, of course, of course the japanese ptb are constantly gouging japanese citizens to help their maggot friends foreign and domestic. Central bankers don't give a flying fuck about the average person on the street. Bonus time again bitchez-san.
Fitting Dora classic (one for the bookmarks)
http://www.youtube.com/watch?v=anGXld-4hCA
Here in the Deflationists Lounge we were having a lot of trouble with this latest "monster" characterisation. Maybe we could run an ad campaign to try and soften Deflation's image but have you seen the prices for ad time lately?! Then we settled into a skeptical funk where we lamented about Inflation's image handlers and how they have been able to make Inflation seem so benign - even desireable! Yet Inflation is quietly eating their babies. It was indeed a rough night in the Lounge.
Asians are traditionally heavy savers. When Japanese people feel comfortable with their level of savings, they will spend. If they save too much, economic growth will slow and they'll be forced to spend their savings whether they like it or not, balancing it all out again. That's that funny relationship between "savings" and "consumption" that was apparently forgotten when the world decided that money is something that can be created infinitely from thin air.
If Japanese people want a better quality of life, they will spend more. If they are satisfied with their present quality of life, they will save. That's their decision, not the decision of some central planner Keynesian IDIOTS who think they know what's best for everyone else.