Bank Of Japan Disappoints

Tyler Durden's picture

It would appear, judging by the tumble in JPY crosses (i.e. JPY strength) that the carry-traders of the world are disappointed in the BoJ's lack of exuberance.


But it is the commentary that is truly baffling in its contempt for the truth:

  • *BOJ: EXPORTS HAVE LEVELED OFF MORE OR LESS (umm, record trade deficit?)
  • *BOJ: PICKUP IN CAPEX HAS BECOME INCREASINGLY EVIDENT (Tankan Capex growth fallen for 2 quarters)
  • *BOJ SAYS JAPAN'S ECONOMY IS RECOVERING MODERATELY (GDP growth worst since Abenomics began)

Black is white; water is not wet; and Abenomics will work any day now...



Charts: Bloomberg

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rsnoble's picture

BOJ= Full of pride.  And that's about it.

john39's picture

Good thing the press around the world is doing its job to expose the massive fraud that is taking place... Right?

TheLooza's picture

I'm sure the traders at Virtu are meeting as we speak to update their strategies for market open tomorrow based on this new information. It's their dedication that got these guys so fucking good at what they do.

knukles's picture

Pleese Pass MSG
Make things more palatable

Manthong's picture

Oriental wisdoms..

Abenomics make sound economic policy..

Wasabi make effective topical treatment for hemorrhoid and monkey butt.

Beam Me Up Scotty's picture

"BOJ= Full of pride. And that's about it."

And that's the problem. Full of pride but they don't want to recognize that they have totally fucked everything up with their money printing schemes. If they had any fucking honor at all they would commit mass banker seppuku.

Rock On Roger's picture

Try some polonium.

You'll forget your other worries.

Stack On

MrTouchdown's picture

Full of Yen too! It's about the same thing.

DIgnified's picture

Let's get this over with already.

Mentaliusanything's picture

Who was it that said " When things get serious you have to lie" This is getting perjury a bad name.

disabledvet's picture

"When things get serious you have to war."

knukles's picture

When things get weird, the weird turn pro.
   -The Good Doctor

ThroxxOfVron's picture

IF only Hunter were alive and penning this I'd at least feel like I was getting my full fucking LSD and adrenochrome combo w/ a vodka grapefruit chaser guzzled at 125 mph in a stolen fire-engine red caddilac convertable hallucinations worth...

...but, it sounds like Chuck Evans is writing the BOJ's shtick in Warren Buffett's bathtub while sipping a prozac xanax purple coolaid slushie out of Yellen's plastic hello-kitty bedpan...

MeMongo's picture

Judging by all this activity Fonestar could probably buy all of Japan with just a few shiny lil bitcoinz! 

ben_bernanke's picture

Wow a 10 pt drop in the Dow futures. The bulls are running scared now!

Beam Me Up Scotty's picture

Why run scared when the Fed is nowhere near to full throttle ramming speed yet? They have room to ramp up the printing to support the Dow. The Dow isn't an indicator of prosperity anymore though.

Grande Tetons's picture

Wow, amazing...exclusive video of Abe after viewing recent economic projections. For some reason, he thinks he is a gay actor on a shitty 60s scifi series. This man needs

Spungo's picture

How can aus/jpy possibly affect the S&P? You can't buy American stocks with Australian dollars.

adr's picture

Algo no care about such things. Algo only buy stocks when currency weaken, sell stocks when currency stronger.

knukles's picture

Don't kid yourself, the Street has a way of fucking up your wet dream. 

Seize Mars's picture


It's the "carry trade," i.e. borrowing in one economy to lend in another. As the currency exchange rate changes, it alters the profitability of the trade. Financial companies that earn carry have more collateral to repo, so they can invest more in fuckin' bullshit like the S&P.

Seize Mars's picture

Paper Money--> Bubble--> Recession--> Stimulus--> Inflation--> Price Controls--> Shortages--> Riots--> Troops on Your Streets

Thanks for doing your share, BOJ!

GooseShtepping Moron's picture

In Japanese culture, according to someone whose opinion I respect, the shape of power looks like a truncated pyramid, which is to say that no one person or group occupies the tippy top, but an amorphous coalition of keiretsu-like power centers occupy the approximate top. No one ruler-will sets the direction, but these power centers alternately shape and are shaped by the Japanese consensus reality.

No Westerner, who gets his conception of Japan primarily from cultural exports like ninja movies and anime, can possibly comprehend just how obtuse this system can be. Facts do not matter much and seldom enter the discussion. Plans are not implemented for their rationality or probability of success. What matters most is maintaining the consensus. The Japanese lie to themselves, they know at some level they are lying to themselves, and yet they believe it anyway.

In short, these statements from the Bank of Japan signify what the Japanese hive mind has decided to believe for the present. This is the policy, therefore it is the reality. It would take someone with a great deal of familiarity with Japan and a genius for cultural sensativity, to penetrate further into this strange beast and give further clues as to its inner workings.

On the other hand, it's hard not to think we might just be witnessing a foreign instance of something much more generically human.

suteibu's picture

"Kay: A person is smart. People are dumb..."  Men in Black

Start there in Japan and expand in all directions.  It's not as if any other government is basing policies on things like facts and truths.

Edit to add:  While there is an ocean of cultural differences between Japan and the "West," it is difficult to see how the individual-freedom-loving Americans are acting any differently than the infamous hive-minded Japanese as regards the efficiency and sanity of their respective governments.  Is being a sheep really any better than being a bee?

GooseShtepping Moron's picture

No need to get your feathers ruffled. Did you read my last sentence?

suteibu's picture

Not upset at all.  Your friend is correct. 

By the same token, do you really believe that the power structure of the US is any different?  Obama/Congress is in charge?  Corporations and banks (keiretsu) have little influence on policies? 

Is Yellen really any different than Kuroda?  Same approximate height (though admittedly Kuroda is less troll-like), same policies that feed the keiretsu, etc.

GooseShtepping Moron's picture

In short, no, I don't believe power structures in the US are essentially any different. It's just easier to watch these dynamics play out in a foreign country than your own country. Just like it's easier to spot the flaws in someone else's character than your own. It is good to correct someone else; it is a nobler thing, however, to correct oneself. It is one of the noblest things of all to chastise and correct one's own culture, but it is also one of the most difficult.

suteibu's picture

Indeed.  True of Japanese and Americans.  Those voices a very small in Japan (a cultural anomaly only recently adopted in the last half of the century) and growing smaller in the US.

Spungo's picture

"No Westerner, who gets his conception of Japan primarily from cultural exports like ninja movies and anime, can possibly comprehend just how obtuse this system can be. Facts do not matter much and seldom enter the discussion."

WW2 vets can. Some of the Americans who faught against Japanese were completely baffled by the way Japanese faught. Even if a plan was an absolute disaster, the Japanese soldiers would continue to jump in head first, knowing they would die while accomplishing nothing. 

knukles's picture

So he’d be damned if any slopeheads were gonna put their greasy yella hands on his boy’s birthright. So he hid it in the one place he knew he could hid something. His ass. Five long years, he wore this watch up his ass. Then when he died of dysentery, he gave me the watch. I hid this uncomfortable hunk of metal up my ass for two years. Then, after seven years, I was sent home to my family. And now, little man, I give the watch to you.
   -yes, pulp fiction


TheRideNeverEnds's picture

*whispers* buyyy theee dippp


1900 bitches! 

yogibear's picture

The Japanese went wrong listening to the US Federal Reserve. 

Now their  printing to the end. The US isn't far behind.

ReactionToClosedMinds's picture

NY Fed...are you aware ?   ......what does Goldman Sachs & JPMorgan/Morgan Stanley tell you to do?

Where are the jornolists (i.e., Ezra Klein)  to cover this travesty? where is the mighty James B Stewart to reveal how Jon Corzine corrupted the 'system' ???????????

ReactionToClosedMinds's picture

the Walter Duranty faux Pulitzer Prize has too many candidates ... so many fake journalists many jornolists....

walküre's picture

same as the jibberish we heard earlier from Evans

These guys are between a rock and a hard place and have to speak from both sides of their mouths because there is no logic to their actions.

Biting time is all they can hope for and please, please, please pay no attention to the fallout from the failures of central banking in the real world.

They're riding this one trick pony until it simply keels over and the legs give way. That's the time everyone needs to be prepared for as best as can be.

Neither government nor central bank are in the business to save people from their own ignorance when the evidence of organized failure is so apparent all over the place.

Shit happens, is what they will say. "We did all we could" is going to be their excuse. Frankly, it matters little at that time what they do or say as they simply cannot do anything to save all of you.

When you're being pushed off a cliff and falling to your death, it matters no more who pushed you. You're dead and won't have anyone to blame but yourself for trusting that person to "have your back" near the cliff.

kellycriterion's picture

People who live on islands shouldn't get too close to water. It makes them silly.

Iam Yue2's picture

The problem is simple, there is a structural imbalance from the days when the ¥ was strong. Exporters, rather than taking the opportunity to correct this, through the pursuit of market share, are rushing headlong in search of profit. The potential benefit of a weak ¥ to the Japanese economy is thus eroded, and Abenomics is exposed for being the marketing gimmick that it is.

sudzee's picture

Dissapointment is the GOAL to get USD/JPY to 150.

AdvancingTime's picture

It is only a matter of time before the yen becomes worthless. Japan is the most indebted developed country in the world and its future prospects are dim and getting worse. If inflation begins to take root it will place upward pressure on Japanese bond yields and raise the cost of government to service its massive debt. As the yen drops even higher stock markets in Japan will fail to protect the wealth of those invested within its borders.

With the BOJ  set to absorb half of the government bonds planned for sale this fiscal year, domestic investors have already started venturing overseas for higher yielding assets. If this turns in to a tsunami of  money fleeing Japan it will constitute the end of the line for those holding both JGBs and the yen. More on this subject below,