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JPY Dumps And Nikkei Explodes As Japan's (32nd Month In A Row) Adjusted Trade Deficit Hits Record High

Tyler Durden's picture


Just because we thought it worthwhile to keep track of how out of control things are getting in Japan, a quick summary of this evening's data. The Japanese trade balance (adjusted) shows a deficit for the 32nd month in a row and has surged to its largest (worst) level on record. It has missed expectations in 5 of the last 6 months. Imports rose more than expected again with a 10.2% MoM gain in imports from the US (and 35% YoY). This massive deficit is before the military spending unveiled last night has hit though one thing is certain, Goldman Sachs will be out with a report any second proclaiming the mythical J-curve about to arrive any moment... The reaction - JPY dumps and NKY explodes higher as bad news is good news in QQE land.


32nd and record monthly trade deficit...


as imports from the US explode...


The reaction


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Tue, 12/17/2013 - 20:47 | Link to Comment The Shootist
The Shootist's picture

Fucking bankster manipulators.

Tue, 12/17/2013 - 21:29 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Every bankster and hedgie (their mothers, and even imbeciles like Gartman) are short JPY.

Can all of them at the same time unwind their short JPY trades without killing each other in the process?

Short JPY Train

Wed, 12/18/2013 - 09:13 | Link to Comment thereisonlyonelaw
thereisonlyonelaw's picture

For every "bankster" short the yen, there are a thousand japanese senior citizens long. While there is some support that might keep the yen from collapsing completely, the fact of the matter is that speculative long positions in yen, if you stop to think about what a "speculative long position" really is, are absurdly high. To call the short trade "crowded" when the yen is still above 2008 levels despite worsening fundamentals is absurd.

Wed, 12/18/2013 - 09:19 | Link to Comment RSDallas
RSDallas's picture

I hope not.

Tue, 12/17/2013 - 20:49 | Link to Comment wallstreetapost...
wallstreetaposteriori's picture

Guess that means no TAPER tomorrow and if there is... it doesn't matter.  The yen carry is going to make all asset prices go to infinity.

Tue, 12/17/2013 - 21:50 | Link to Comment FieldingMellish
FieldingMellish's picture

My thought exactly. This will put upward pressure on the USD and that is the last thing the FED wants in a currency war (doesn't help the bosses on Wall Street).

Tue, 12/17/2013 - 20:54 | Link to Comment CPL
CPL's picture


No one bought a damn thing and Japan is completely dependent on EVERYTHING!

Tue, 12/17/2013 - 20:56 | Link to Comment max2205
max2205's picture

I trust Govt numbers......

Tue, 12/17/2013 - 20:58 | Link to Comment UP Forester
UP Forester's picture

Bullish- for what, I have no clue, but definitely bullish....

Tue, 12/17/2013 - 20:58 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Seems like not that long ago people were so worried about Japan buying up a lot of expensive real estate in the US.

Tue, 12/17/2013 - 21:00 | Link to Comment q99x2
q99x2's picture

Not only that, Bitcoin has entered its bi-annual post ramp 5 month lull.

Starving Student, "Will Work For BitCoin over the Winter semester.

Are the Japanese buying diapers from US manufactures or what?

Tue, 12/17/2013 - 21:08 | Link to Comment pods
pods's picture

Geiger counters, duct tape, and plastic.


Tue, 12/17/2013 - 21:44 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

With no nukes, they have to power electricity with coal and petroleum products (not to be confused with oil).  The US refines crude and sends the result to Japan because Japan refineries are saturated (they are importing almost 5 million bpd).

Always . . . always look at things from oil's perspective.  If you look properly, all things will be explained by it.

Wed, 12/18/2013 - 01:57 | Link to Comment dudeman
dudeman's picture

"Are the Japanese buying diapers from US manufactures or what?"

Adult diapers.

Tue, 12/17/2013 - 21:05 | Link to Comment spanish inquisition
spanish inquisition's picture

Interesting that Japan went nuclear on printing money. Gotta be at least half of the country left to destroy from their last nuclear initiative. You gotta admire their spunk.

Tue, 12/17/2013 - 21:10 | Link to Comment fonzannoon
fonzannoon's picture

where is the 10yr JGB?

Tue, 12/17/2013 - 21:22 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

.656........and falling yield:)))  It is a fucked World....and we all willsoon be playing!:)

Tue, 12/17/2013 - 21:20 | Link to Comment JamesBond
JamesBond's picture

102.6 to 102.9 is not an explosion, it's a piss in the wind

Tue, 12/17/2013 - 22:49 | Link to Comment theliberalliberal
theliberalliberal's picture

havent you heard?  5% growth of military over 5 years also an explosion (aka dis-implosion).





Tue, 12/17/2013 - 21:24 | Link to Comment vincent
vincent's picture

I think about ten percent of Japan's imports from US is food based, and they import more than half of their food from the world.

They're food sufficient in chicken, eggs, fish, and rice (uh, have been in the past).

I'd expect that they're also selling fewer autos worldwide (China for sure)

Electronics exports in the tank, and  power generation in country 'curtailed' assumes more dollars needed for more energy imports.

Debt/GDP at 200. Cannot dump dollars. Inflation increasing.

Who bails them out?



Tue, 12/17/2013 - 21:26 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

The other 90% is ENERGY and Sex Toys!

Wed, 12/18/2013 - 01:56 | Link to Comment dudeman
dudeman's picture

No one can bail them out; they're simply too damn large. I think a further depreciation of the currency actually worsens their current account and balance of trade because they import all of their food and energy. They're basically fucked.

Wed, 12/18/2013 - 09:23 | Link to Comment RSDallas
RSDallas's picture

Last sentence basically sums it up folks.

Tue, 12/17/2013 - 22:01 | Link to Comment Hedgetard55
Hedgetard55's picture

Fucking yellow monkeys are picking up where Truman left off, and they are doing it to themselves this time.

Tue, 12/17/2013 - 22:08 | Link to Comment czarangelus
czarangelus's picture

Crack up boom?

Wed, 12/18/2013 - 06:12 | Link to Comment Golden_Rule
Golden_Rule's picture

oh jeez.  Currency debasement leading to a worse trade deficit?!  HEY JAPAN!! YOU'RE DOING IT WRONG!!!

Wed, 12/18/2013 - 08:14 | Link to Comment bentaxle
bentaxle's picture

The really laughable thing is that the USD/JPY chart isn't more vertical!

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