Chart Of The Day: "Japan Has No Alternative But To Print And Print And Print"

Tyler Durden's picture

Today's Chart of the Day comes by way of SocGen's Albert Edwards who in one image shows why, with gross debt issuance needs between budget funding and rolling maturities at 60% of GDP, Japan has no choice but "to print and print and print"

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Bryan's picture

Japan is showing us the way.  They are the US on steroids - doomed to the same fate.

King_of_simpletons's picture

USA has no alternative but to print, print and print.

kridkrid's picture

It's really that simple. Controlled opposition in the form of Ted Cruz provides the impression that there is someone fighting for some alternative... this is only part of a series of lies being presented to obscure the truth. The truth... our system loans money into existence with interest attached. Only the system doesn't contain both the principle and the interest, so more debt must be created in order to roll debt forward... FOREVER. The system doesn't care who gets saddled with the debt, only that debt continues to expand... FOREVER. We don't really "print"... we issue debt. Banks then leverage debt to issue more debt. The life expectancy of system is governed by simple math. Time's almost up.

There is no real political opposition... real opposition would tell the truth. Real opposition would oppose the system.

slotmouth's picture

Japan is clearly not printing enough.  Krugman says that when massive money printing doesn't fix the economy just keep doing more of it. Did you know that he has a nobel prize?

Joenobody12's picture

OObumma's drones kill people and he got a Nobel peace prize for it too.

firstdivision's picture

Japan isn't so much as "US on steroids" as they are the US in 2.3 years.  But all in all, yes we are doomed to default, but that is more liberating than doomed.

rubiconsolutions's picture

"Hey Shinzo, we're gonna need more toner cartridges"

Pig Circus's picture

Japan isn't so much as "US on steroids" as they are the US in 2.3 years. 

Japan is printing 1 times GDP over 2 years correct? I think that's the number off the top of my head. So we know what our final QE number will be.  8 trillion a year or $666 billion per month. That's the number Yellen The Felon will reach. How appropriate a number.

Poundsand's picture

Biggest news of the week!  Don't think that the Saud's won't pull the trigger.  They know that this is for their very survival.  If Obama doesn't come around, look for the Saud's to start selling their oil for what?  Gold.  And then look for war to break out shortly thereafter. 

Can you imagine what that would do to America and the world's faith in the petro dollar?  Talk about putting a gun to Obama's head.  The Sauds are serious.

andrewp111's picture

Good. Let the shit hit the fan.

King_of_simpletons's picture

This news (Saudis severing Diplomatic relationship under Obama) isn't a bad thing. This is wonderful news. Good riddance to bad rubbish.

Urban Redneck's picture

You live up to your name. This isn't like the Saudis, even making an allowance Bandar's western eccentricities. The UK yellow journalists didn't live up to their headline (no severing), but there is something far more serious going on that isn't in any headline for this sort behavior to be publicly exhibited.

Joenobody12's picture

The tiime to buy some gold is running out. Wait till Mohammed start dumping its $600 billion US treasury and you will see gold rocket like never before.

Vampyroteuthis infernalis's picture

The Japs keep printing away. The result is economic stagnation and deflation excluding their stock market and food. Wait until default day, that will be a true deflationary storm!

HardlyZero's picture

Yellen the VIXen (whore) of Babylon.  I think she will be the last Fed Head.  Maybe they will name a ice cream after her...Dammit Jannet ! ....I owe youuuu.... (sorry Rocky Horror fans)

yogibear's picture

Japan is the US Fed's test model. Their seeing how well Japan fairs with infinite printing.

HardlyZero's picture

Maybe like Weimar Germany, Japan can rent or sell off some land....starting with Fukushima.

They can tout it as "Energy Ready" property and instead of using Solar energy...they can use Fuku energy.  Instead of putting Solar Panels on the roof, you bury them under your house.  Also there is free (passive) heating in all the first floor rooms.  Another upside is you get free lighting at night, but the downside is after 10 years you go blind.

Choices, Choices....maybe they can get the ACA website people over there to fix their problems.

StychoKiller's picture

Ain't no box around yer thinkin' there, pardner! :>D

prains's picture

Yes, Japan is the test to see what happens and make adjustments. I thought too at one time Germany was the other test case in the opposite direction and the nSSA would choose the direction to follow based on either advanced outcome but the Germans really didn't provide a path just another euro circle jerk so the nSSA went the easy route QE4EVA or realisticaly QE4WWIII.

Not Too Important's picture

Japan won't live long enough to finish the 'test'.

Neither will North America.

Follow the yellow cake road.

Alexandre Stavisky's picture

"If you peruse the Chinese diplomatic corps daily schedule, it appears that October is experiencing especially vigorous activity".  For some reason they are particularly busy in activities involving SouthEast Asia and neighboring countries.  Building a framework for greater economic consolidation in the region to the detriment of the US/Japan alliance system.

SpykerSpeed's picture

So naturally they'll all start using gold to buy their sushi and Nintendo games, right zerohedge?

LawsofPhysics's picture

What gold, they (and I) have no gold.  They have been buying the shit out of bitcoins with freshly printed paper promises, they will be fine, right douchebag?

BrocilyBeef's picture

Ha! Part with gold to buy sushi? 

Seems like silver would be better for that small transaction.

Although, I guess banker scrip is best, right?

hedgeless_horseman's picture



So, the USA is not exceptional?

BrocilyBeef's picture

Exceptional ideas -- ignored or destroyed by many useless idiots.

Rainman's picture

With this level of competition, a Bronze Medal in the Debt Olympics really ain't too shabby.

BrocilyBeef's picture

You didn't build that debt, you had help!

I am a Man I am Forty's picture

sounds pretty fucking familiar

dobermangang's picture

There's always war.  Banzai bitchez!

jubber's picture

amd 10y JGB is 0.065%   How is that possible?

Dudeskis's picture

How is gold dropping? It's a Mickey Mouse world we live in now. Embrace the insanity or be driven insane.

Winston Churchill's picture

Dollar rose overnight on China banking fears.

My pounds shrank 0.37% as  well.Can't take them from escrow until Nov.1st.

Hope it reverses,that is 3 ozs of gold gone poof..

km4's picture

Next post.....US Really Has No Alternative But To Print And Print And Print

Dr. Engali's picture

Not an entirely true statement. They do have another choice, but they refuse to do it, and that is to screw the bankers and default.

John McCloy's picture

Whew..could thing we are not in that position.

firstdivision's picture

They have another choice.  It's to default, tell the world to go fuck themselves.  Kick out all but domestic banks, go to a domestic protectionest trade strategy, and keep exporting radiation to the world.

enloe creek's picture

who cares, they can roll all the debt in the world into a big ball and stuff it.
if you are caught out in the shit after all this it is your own bidness. It's not like anyone is asking for a solution or debAting policy anymore. Our future is what it is so the house goes up in flames and you can't save anyone anyway so just step outside and let it go. Learning the worlds problems or anyone's for that matter are not your own is the best solution

yogibear's picture

Ya think the Yen should be dying. Next the US dollar.

Zimbabwe is the economic model used by Japan and the US. Print until you hyper-inflate.

Rainman's picture

Japan debt passed one quadrillion yen in August ( $ 10.5 Trillion US )


babylon15's picture

You can't have inflation when salaries don't go up.  So few people understand this.


Salaries drive economies.  The pressure on salaries is down.  Way too many people unemployed that are desperate for jobs right now.



khakuda's picture

True, but when you print all that money it goes somewhere and you can have massive inflation in asset prices like houses, bonds and stocks.  You can also have inflation in things that get paid for by a third party or where people can finance them like heatlhcare, tuition, etc.

Inflation isn't just about the basket of goods included in the CPI or PCE.  This is a major point the Fed has not yet grasped.  Just because the Fed's preferred measures of inflation seem quiescent, doesn't mean inflation doesn't exist in other places.

moneybots's picture

"Inflation isn't just about the basket of goods included in the CPI or PCE.  This is a major point the Fed has not yet grasped.  Just because the Fed's preferred measures of inflation seem quiescent, doesn't mean inflation doesn't exist in other places."


Inflation is expansion of money and credit.  Prices react to inflation.

The FED can print 100 trillion dollars and dump it in a land fill.  If the money doesn't go anywhere, it is as if it was never printed.  Pushing on a string.  If the FED printed 1 trillion tomorrow and put it directly into the economy, prices would immediately rise to reflect the trillion dollars that had been injected into the economy.  The FED however, doesn't write checks out to John Q. Public.  They have to borrow the money.

The economy and the stock market are two different things.  The FED talks of creating a wealth effect by goosing the stock market.  But incomes are not going up with the cost of living and lack of employment, thus the wealth effect is a FED fantasy, not reality.  A bigger retirement fund means nothing when one's purchasing power has declined 8%.

The government does not count the price of stocks or the price of houses in the CPI.  However, those are things people pay for.  Like wise they do not count the crash of the price of those things as deflation, as when the stock market dumps 50%.


alangreedspank's picture

True. Even when the money starts circulating, the Fed's tools are pretty laggy. Food chains and producers in Japan have hiked their prices 10-15% since early 2013 for the first time in 10 to even 20 years and yet, their CPI picks up.....0.8%.

Because new money doesn't not flow uniformly in all asset classes, things can get pretty bad before the government sees anything on its radar. By that time, savings went poof already.

sschu's picture

Because of government funding there is “inflation” in the HESS sectors.  Health, education and social services.  There is inflation because we get less and fewer results / dollar spent.  We are also increasing the total spend in these areas.  Subsidizing failure.  Tell me how all that is going to work out. 

The private sector is funding this gross misallocation, as best it can.  At least those sectors that are not at the government trough.  We are borrowing the rest.

Borrowing money to pay for food, rent, books and doctor visits.  How stupid is that really?

We know where it ends, either Atlas will shrug, the government will confiscate everything or we print ourselves into oblivion.  Or a combination of all these.


Bazza McKenzie's picture

Thanks for explaining Zimbabwe's hyperinflation.  I hadn't realised it was driven by rapidly rising wages in a tight labor market.