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Japan Debt Update: ¥1,020,000,000,000,000.00

Tyler Durden's picture




 

It's been a while since we looked at Japan's debt situation. Here is the dire update.

From Japan News:

Japan’s national debt totaled a record-high ¥1.02 quadrillion as of the end of March, up ¥33.36 trillion from a year earlier, the Finance Ministry said.

 

The central government debt, which increased ¥7.01 trillion from the end of December last year, kept rising mainly due to ballooning social security costs in line with the aging of the population.

 

The balance of government bonds, financing bills and other borrowing crossed the ¥1 quadrillion line for the first time ever at the end of June 2013.

 

The national debt stood at ¥8.06 million per capita, based on an estimated population of 127.14 million as of April 1.

 

Finance Minister Taro Aso said the situation has become “very severe” because of slow progress in fiscal reforms.

 

Of the debt, general government bonds increased ¥38.86 trillion from a year earlier to ¥743.87 trillion. Financing bills, used to procure funds for currency market intervention, totaled ¥115.69 trillion, up ¥420.8 billion.

 

But fiscal investment and loan program bonds, used to raise funds for loans to government affiliates, decreased ¥5.05 trillion to ¥104.21 trillion.

 

Long-term debt, excluding fiscal investment and loan bonds, financing bills and others, totaled ¥770.4 trillion.

* * *

So Japan's debt grew by 7 trillion in one quarter? Sure, why not. Here's why: presenting the Bank of Japan's balance sheet.

 

Perfectly "New", and quite sustainable, Normal.

 

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Sat, 05/10/2014 - 20:45 | 4747058 THX 1178
THX 1178's picture

At this point does it really matter? Won't the reset be horrifying no matter what?

Sat, 05/10/2014 - 20:49 | 4747077 balanced
balanced's picture

Hopefully the "reset" will coincide with the collapse of government as we know it. It's our current stuation that's horrifying.

Sat, 05/10/2014 - 21:05 | 4747108 nope-1004
nope-1004's picture

"Full faith and credit"..... LMFAO.  Neither sleet nor snow nor..... fucking quadrillions in debt will keep that pig from dying in a heap of paper trash.

Good luck Japan.  Your gov't financed your great grandchildrens' future, and then some.

 

Sat, 05/10/2014 - 21:10 | 4747126 LetThemEatRand
LetThemEatRand's picture

The guys who are receiving a big chunk of these unsustainable deficits (the oligarchs) in the form of spendable cash today, don't care much about sustainability of the model.  In fact, they want the system to fail.  They use the printed fiat to buy tangible things.  When the system resets, they will be Kings.

Sat, 05/10/2014 - 21:11 | 4747136 NoDebt
NoDebt's picture

A QUADRILLION Yen!  What is that in dollars?  Like $1,400?

 

Sat, 05/10/2014 - 21:24 | 4747174 Keyser
Keyser's picture

I remember a day when a million bucks was a lot of money... Funny, it wasn't that long ago... Think I'll run down a grab a $10 value meal at Micky D's... 

 

Sat, 05/10/2014 - 21:28 | 4747182 old naughty
old naughty's picture

Hopefully the "reset" ...

Japan can't wait that long!

Sat, 05/10/2014 - 21:31 | 4747189 Ineverslice
Ineverslice's picture

 

Stay tuned for antother episode of "Samurai Optometrist".....!!!


Sat, 05/10/2014 - 21:42 | 4747227 Manthong
Manthong's picture

A quadrillion here, a quadrillion there, pretty soon you are talking about real money.

Sat, 05/10/2014 - 22:03 | 4747289 Buckaroo Banzai
Buckaroo Banzai's picture

That reminds me. I need a new hockey stick.

Sat, 05/10/2014 - 22:11 | 4747304 NoDebt
NoDebt's picture

Remember when a pretty damned good hockey stick cost like $65?

Priced one lately?  

Sat, 05/10/2014 - 22:29 | 4747345 economics9698
economics9698's picture

226% public debt to GDP?

How does the tribe pass themselves off as Japanese bankers?

Sat, 05/10/2014 - 23:35 | 4747482 TheRedScourge
TheRedScourge's picture

No need for panic, I'll let them borrow a few quadrillion Zimbabwe Dollars if things get really bad.

Sun, 05/11/2014 - 06:06 | 4747701 svayambhu108
svayambhu108's picture

¥1,020,000,000,000,000.00 looks like a train

Sun, 05/11/2014 - 07:07 | 4747727 negative rates
negative rates's picture

Remember? In Japan, debt doesn't matter.

Sun, 05/11/2014 - 08:02 | 4747770 Oh regional Indian
Oh regional Indian's picture

Japan was never meant to succeed. As a nation.

Once the Marshall plan was in and the emperor had been confirmed as a USA vassal, it was all over bar the shouting.

Hundreds of nuclear plants right on top of the most seismic spots in Japan, culture ripped out from the heart, McDonardo-ization, frigging baseball as national sport and a currency that is the joke and the bitch of the western world.

Recepie for exactly what is going on today...

ori

http://aadivaahan.wordpress.com/2010/09/03/the-curse-of-free-energy/

Sun, 05/11/2014 - 08:55 | 4747821 Abi Normal
Abi Normal's picture

LOL, as if any of you posting here know jack shit about what is going on, at least you do have an idea, and that is because ZH tells much truth...still noone knows what is going to happen in the future.

Dream on Pukin lovers, contrarians and America haters...you will find yourselves on the wrong side of the fence.

Sun, 05/11/2014 - 12:08 | 4748157 Stackers
Stackers's picture

Ran the numbers for some perspective.

thats about $80,000 per citizen

US is currently at $55,000 per citizen according to debtclock

Sun, 05/11/2014 - 00:46 | 4747559 Zero Point
Zero Point's picture

Hiring locals.

Sun, 05/11/2014 - 08:04 | 4747768 Pee Wee
Pee Wee's picture

Fascists hide behind incorporation where fraud and untruth thrives and laws do not apply - domestic or global.

Everything else is liquidated.  That fraud-fiat bubble is pumped full of Fascism, nothing else.

"No one saw it coming..."

Sun, 05/11/2014 - 18:57 | 4749111 newbie vampire
newbie vampire's picture

226% public debt to GDP?

How does the tribe pass themselves off as Japanese bankers?

Its called Voodoo banking for the serfs.  Only way out is a default on govt. debt and a "reset" or everyone will be using Million Yen notes for grocery shopping in the not too distant future.  Mrs Watanabe had better be holding some precious metals in the closet.

 

Sun, 05/11/2014 - 00:07 | 4747514 Squid-puppets a...
Squid-puppets a-go-go's picture

i went to buy one but the price has risen, well, in an eponymous fashion

Sun, 05/11/2014 - 04:43 | 4747673 hansg
hansg's picture

None of this matters though - most of that debt is to its own citizens. If the state can hold on another twenty years or so, most of them will be dead from old age. Some cunning legal way to make debt disappear on the death of the holder should suffice to solve the problem.

Sun, 05/11/2014 - 06:46 | 4747714 new game
new game's picture

step one: I am powerless over my debtmaster.

Sun, 05/11/2014 - 08:05 | 4747774 Pee Wee
Pee Wee's picture

Nothing "disappears."

You are merely marginalizing Fascism... nothing "legal" about it, fool.

Sun, 05/11/2014 - 18:59 | 4749114 newbie vampire
newbie vampire's picture

None of this matters though - most of that debt is to its own citizens. If the state can hold on another twenty years or so, most of them will be dead from old age. Some cunning legal way to make debt disappear on the death of the holder should suffice to solve the problem.

 

100% death duties.

Sun, 05/11/2014 - 10:39 | 4747973 Lewshine
Lewshine's picture

@ Keyser

Hasn't the Happy Meal ALWAYS been $10.00?? ...Of course it has!! Otherwise, Ben and Janet's .02% inflation assessment would be way wrong. Yep...Things have never been cheaper!!

 

Now, back to Dancing With The Stars!!!

Sat, 05/10/2014 - 21:27 | 4747181 WTFUD
WTFUD's picture

Da! Per Chinese capita

Sat, 05/10/2014 - 22:12 | 4747309 Arius
Arius's picture

another ukrainian?

Sat, 05/10/2014 - 23:16 | 4747451 Spitzer
Spitzer's picture

Math is sooooo Kyle Bass 2012

Sun, 05/11/2014 - 00:29 | 4747538 sodbuster
sodbuster's picture

According to the Keynesians, central bankers, and other assorted idiots running the show, they could easily fix this problem- they just need to print more!! Dumb bastards!!

Sun, 05/11/2014 - 09:08 | 4747835 Offthebeach
Offthebeach's picture

Why don't they make a real, really large, big, biggie size coin? ( per Dr. Krugman )

Sat, 05/10/2014 - 21:48 | 4747214 Kirk2NCC1701
Kirk2NCC1701's picture

Its about $10 Trillion.  Given their population, that scales to the US Debt being ~ $10T * 318/126, or ~ $25 T.  That's about $78,700 per person.  Have fun paying that off, especially with an aging and shrinking population.

Compared to the US Debt of $17.5T ($55,000/person) we're not that far behind.

Sat, 05/10/2014 - 22:12 | 4747310 NoDebt
NoDebt's picture

None of it's getting repaid anyway, so who cares what the number is?

Sat, 05/10/2014 - 22:28 | 4747348 fonzannoon
fonzannoon's picture

good point. 17 trillion...27 trillion...no difference.

Sun, 05/11/2014 - 00:10 | 4747517 Squid-puppets a...
Squid-puppets a-go-go's picture

yer, a jubileee is a jubilee

but whatch the real revolution start, complete with guillotines, when TPTB announce segregated jubilees: Debts of the TBTF waived, debt of the plebs maintained

that's gonna get the slobs off their bean bags and put their 'call of duty' skills to test

Sun, 05/11/2014 - 06:36 | 4747712 BigJim
BigJim's picture

 but whatch the real revolution start, complete with guillotines, when TPTB announce segregated jubilees: Debts of the TBTF waived, debt of the plebs maintained

'When"?? They already have. And apart from a few of us no one seems to give a damn.

Sun, 05/11/2014 - 07:45 | 4747751 Which is worse ...
Which is worse - bankers or terrorists's picture

Ding ding ding winner winner chicken dinner.

Sun, 05/11/2014 - 09:07 | 4747829 Abi Normal
Abi Normal's picture

yes, the bell has rung, all the Pavlovian's may now eat (shit) and die! 

No way to pay off the debt you say?  How foolish of me, to think they are digitizing so much money, means they are paying it off right now, with inlfation...soon to replaced by hyperinflation, to be followed by stagflation; then of course war.

If that fails, then there will be a debt jubilee...and that ain't gonna be your debt (slaves)....bwahahahhahaa!

I can't figure out which will be worse?  Ah, hell, it is all bad, no good outcomes, unless you are a murdering, greedy bastard, who likes to see people suffer.

I guess I will see some of you cocksmokers on the battlefield one day...here's to me seeing you FIRST!!!!  Suckers...

Maybe this OAS thing come Friday, will help get things kickstarted here in America!  At some point people wake up, oh, never mind, American's are too busy watching Idols and doing bong hits to care much....FUCK!

Sun, 05/11/2014 - 09:09 | 4747837 Abi Normal
Abi Normal's picture

LOL, my serial junkers are here fast today!  Good for you, down vote me all ya want, not gonna change the outcome peckerwoods...you still are going to fry!

Sun, 05/11/2014 - 10:48 | 4747985 Lewshine
Lewshine's picture

You could dip the average American's 5 year old in cooking oil, roll him in flour and bake him at 425 degrees for an hour - And that wouldn't be enough to get their parents to stand up and do something. Face it...ALL evidence points to this country being toast.

 

Look who was elected twice to be President.

Sun, 05/11/2014 - 02:12 | 4747627 Central Wanker
Central Wanker's picture

"A QUADRILLION Yen!  What is that in dollars?  Like $1,400?"

 

I don't know what it is in dollars, but it will be about one ounce of gold. Some day.

Sun, 05/11/2014 - 04:06 | 4747656 Al Gorerhythm
Al Gorerhythm's picture

The ironic thing is the two currencies are on parity. 101.3 yen = 100 cents US. Then again, all currencies are on the same measuring stick. The numeraire is "faith". Fuck me, I'm going to be sick.

Sun, 05/11/2014 - 08:12 | 4747779 Pee Wee
Pee Wee's picture

It ain't faith, it's FRAUD.  Full FRAUD and credit.

We're not talking about anything but imagination.  Quit trying to make it sound like even a shred of fiat is legitimate or has "worth" in the universe.

Weak minds abound on ths topic.

Sun, 05/11/2014 - 05:26 | 4747687 thecoloredsky
thecoloredsky's picture

They probably could have built a few death stars by now. 

Sat, 05/10/2014 - 21:32 | 4747194 old naughty
old naughty's picture

when you eliminate the commas and dot, it's only 102 X 1013.

Sat, 05/10/2014 - 21:32 | 4747190 Stoploss
Stoploss's picture

It's actually brilliant. Unintended, but brilliant none the less.

Run it out on a flagpole, no body wants to collect on the debt if it went bad anyway.

What are they going to do, go get a chunk of that irradiated mess called Japan?

The whole country is covered in plutonium dust, not to mention the rest of the northern hemi.

 

 

Sat, 05/10/2014 - 21:19 | 4747157 seek
seek's picture

Unfortunately there's a bunch of control freaks waiting in the wings for an opportunity* to implement something even worse.

What will be interesting is if people let them get away with it or fight it, and a lot of that depends on these bozos delivering goodies they don't own to others that never earned them. Pray they're as incompetent in a crisis as they have been when things are going "well."

* Let no crisis go wasted

Sat, 05/10/2014 - 21:34 | 4747198 willwork4food
willwork4food's picture

The thing about power-hungry, rich, always want more sociopaths is that their evil tends to get in the way of others who also think they're the king of the hill. Ergo, evil tends to destroy itself over time. Let's pray it doesn't take out us out with it.

Sat, 05/10/2014 - 23:16 | 4747452 Oldwood
Oldwood's picture

Leave it to the Japanese to actually be the first to infinity.

Sun, 05/11/2014 - 04:34 | 4747671 piliage
piliage's picture

I think this is actually the number that Cal Worthington used to refer to as "A Jillion" http://www.youtube.com/watch?v=0HJALwCNbco

Sun, 05/11/2014 - 08:14 | 4747782 Pee Wee
Pee Wee's picture

Fortunately, there are a bunch of control-freak hunters waiting for the "opportunity" to make them all bleed.  Neighbors, friends, family, it doesn't matter these "control freaks" are dead.

Blood in the streets will need a new definition.

Sun, 05/11/2014 - 09:35 | 4747882 MachoMan
MachoMan's picture

What will be interesting is if people let them get away with it or fight it, and a lot of that depends on these bozos delivering goodies they don't own to others that never earned them.

This is why we're in a crisis now...  if there was an endless spigot of bread and circuses, then we wouldn't even know there was an issue.  There is no voluntary deleveraging of a critical mass.  Revolution is born out of the same necessity, not want.

The point should also be made that our present form of government, as bad as it may be, does at least have some positive vestiges of collective bargaining from years long gone.  While these are eroded daily, they still may be much better than what a successor may impose.        

Sun, 05/11/2014 - 01:47 | 4747618 Mine Is Bigger
Mine Is Bigger's picture

"PLEASE do not worry," according to Japan's Ministry of Finance.  I guess they've got a point -- worrying about it won't solve the problem.  

Sat, 05/10/2014 - 20:55 | 4747084 813kml
813kml's picture

Hopefully Moore's Law can keep up with the Jap financial system.

Bullish for quantum computing.

Sat, 05/10/2014 - 20:56 | 4747089 So Close
So Close's picture

Sustainable.

Sat, 05/10/2014 - 21:30 | 4747184 willwork4food
willwork4food's picture

only 7 trillion in one quarter? Geez guys, you are really, really kind of paranoid. Things look great!*

 

(from the Rothschild's perspective)

Sat, 05/10/2014 - 21:36 | 4747209 TN Jed
TN Jed's picture

It ain't the reset they are trying to deny, but rather the reason. Too much blade, needs moar stick.

Sun, 05/11/2014 - 03:25 | 4747640 Al Gorerhythm
Al Gorerhythm's picture

"At this point does it really matter? Won't the reset be horrifying no matter what?"

What do you mean, the coming reset? The value of my savings are being reset every.... fucking....day!!!!! It doesn't matter what it is that I've saved, PMs real estate, shares, superannuation,..they're all being destroyed, right before my eyes and the thing is, I know it's not through any fault of the fundamental reasons for saving excess production. They are being manipulated by the very fact that the monetary system is fraudulent and the people who own that system are criminally stripping me of my retirement.

You have one junker who has a firm grasp of the surreal. Fucking retarded piece of shit. Too fucking stupid to read the headline of the article and then waaayyy too stupid to grasp its magnitude. Retarded fuckin' asswipe.


Sun, 05/11/2014 - 08:15 | 4747783 Pee Wee
Pee Wee's picture

You forgot "Mission Accomplished," pissboy.  Now go find a job!

Sun, 05/11/2014 - 08:34 | 4747800 Keyser
Keyser's picture

Yes, your deposits are dropping in value every day... If you leave your assets in cash, then you have no one to blame except yourself since you possess this knowledge... 

The coming reset is going to drop the USD index by at least half, somehow a bit more than current inflation and devaluation...

So you have 2 choices, 1) keep bitching until your wealth is gone or 2) do something about it... Your choice... 

 

Sun, 05/11/2014 - 12:50 | 4748215 MachoMan
MachoMan's picture

Yes, because the answer away from cash is such an obvious one...  especially considering that until the prophesied reset, the dollar will have a good chance of being the world's safe haven...

Essentially, the only thing you can do is mitigate your damages through diversification, but this means that you're stuffing your money into more than a few losers and you're sure to feel some pain.  If I have all the tools and resources that I'll need to sustain my life and have a pretty solid standard of living, all things considered, then I'm not sure there are any perfect choices left in which to invest.

Sun, 05/11/2014 - 14:25 | 4748446 tarsubil
tarsubil's picture

Right now is horrifying. I'm not sure why the reset would be.

Sat, 05/10/2014 - 20:46 | 4747065 lordbyroniv
lordbyroniv's picture

BITCOIN !!!!!!!

Sat, 05/10/2014 - 20:48 | 4747070 onewayticket2
onewayticket2's picture

'Oh no. There goes Tokyo...go go Godzilla '

Sat, 05/10/2014 - 21:13 | 4747140 BlindMonkey
BlindMonkey's picture

They should be able to plug up the leaks @ Fukishima with all those ledger entries thereby fixing the damage and not letting Godzilla out of the gene cage in the first place.

Sat, 05/10/2014 - 20:48 | 4747071 PT
PT's picture

1.02 PetaYen

Sun, 05/11/2014 - 11:49 | 4747086 813kml
813kml's picture

That's a new zoo opening in Tokyo, admission is only a TeraYen.

Sun, 05/11/2014 - 07:49 | 4747754 Which is worse ...
Which is worse - bankers or terrorists's picture

Not sure why I keep thinking of Germany in 1923 when I see numbers like this.

Sat, 05/10/2014 - 20:53 | 4747073 cowdiddly
cowdiddly's picture

'rock solid baby' wayda go Mugabe.. er.. I mean just Abe

Sat, 05/10/2014 - 21:50 | 4747251 logicalman
logicalman's picture

Mug Abe?

Sun, 05/11/2014 - 06:31 | 4747709 redwater
redwater's picture

In the end, we're all Zimbabweans.

 

Sat, 05/10/2014 - 20:49 | 4747075 Aussiekiwi
Aussiekiwi's picture

leaves on the trees have more value than the yen.

Sat, 05/10/2014 - 21:32 | 4747192 WTFUD
WTFUD's picture

Carbon Credits?

Sat, 05/10/2014 - 20:51 | 4747079 Yen Cross
Yen Cross's picture

  And to think this nutjob is making this prediction.

   Yen at 85 Seen by Tokai Predicting BOJ Policy Miss: Japan Credit - Bloomberg

Sat, 05/10/2014 - 21:03 | 4747106 fonzannoon
fonzannoon's picture

i saw that the other day Y/C and was going to link it on this thread to you. crazy eh?

Funny he avoided mentioning that the Nikkei would be around 6K and the S&P god knows where.

Sat, 05/10/2014 - 21:51 | 4747256 WTFUD
WTFUD's picture

Yep the sheer arrogance of his delivery surpassed even Benny the Bolt Bernanke. At least Ben's lips would quiver.

Sat, 05/10/2014 - 22:06 | 4747295 Yen Cross
Yen Cross's picture

  Thanks for thinking of me Fonz.

   Yea, that sounds about right for the  "PenNikkei".

Sat, 05/10/2014 - 22:58 | 4747412 medium giraffe
medium giraffe's picture

85? How the fuck is that justified? What?

Sat, 05/10/2014 - 23:27 | 4747470 fonzannoon
fonzannoon's picture

because when you have run the debt high enough, as nodebt alluded to above, everyone knows it will never be called in. so there is a good chance people still run towards the burning building.

Sat, 05/10/2014 - 23:53 | 4747501 medium giraffe
medium giraffe's picture

Fair point.  Unless you're able to magic a trillion dollar coin out of your ass I suppose.  Still, 85, calling for a piss weak USD vs a JPY that no one has any real risk commitment to for carry and safety.  Running towards a fire is all well and good (Italian bonds?!),but can't see it getting that low.  Been long since 70 something and the same conditions (or percieved conditions) just don't exist as compared to then, pre intervention, pre Abe etc etc.

Sat, 05/10/2014 - 20:51 | 4747081 Rubbish
Rubbish's picture

Japans debt is bigger than the bagger 293.

 

http://www.youtube.com/watch?v=cocg1u0nwbI

Sat, 05/10/2014 - 20:52 | 4747083 new game
new game's picture

less leaves, more value...

Sat, 05/10/2014 - 20:58 | 4747093 N57Mike
N57Mike's picture

?????
Shikata ga nai

Sat, 05/10/2014 - 21:04 | 4747115 Yes_Questions
Yes_Questions's picture

 

 

is that Yakuza for Forgetaboutit?

Sat, 05/10/2014 - 20:58 | 4747095 Pooper Popper
Pooper Popper's picture

Horry schittt!

Datta vig number!!!

Sat, 05/10/2014 - 20:59 | 4747096 JenkinsLane
JenkinsLane's picture

Is a quadrillion yen enough to build a Death Star?

Sat, 05/10/2014 - 21:17 | 4747151 TheReplacement
TheReplacement's picture

Almost.  You need some yuan, rubles, and dollars.  Save the Euros for making change later.  You are on the death star - planet earth.

Sun, 05/11/2014 - 00:28 | 4747536 medium giraffe
medium giraffe's picture

Debt Star maybe.

Sat, 05/10/2014 - 21:01 | 4747104 Carl Popper
Carl Popper's picture

"Please do not worry"

 

Rotflmfao.   That is the official japanese government position.  In traditional polite japanese speak i am surprised they didnt follow it with

 

"Please be happy" to a reggae beat.

Sat, 05/10/2014 - 21:34 | 4747196 Poor Grogman
Poor Grogman's picture

Governments seem to be transitioning to a new fiat system, where they just spend the money into existence, without even acknowledging the debt. Except as a bookkeeping entry.

Once the realisation of this process becomes widespread, .Gov will gather even more power to itself, as everyone crowds around with their hand out waiting for some crumbs.

Sovereign Debts can't be repaid therefore they won't.....but .....It may not be as simple as case of hyperinflation or default. .GOV plans to always be there spending spending spending, and on the other side of that unfortunate trade will be consumers trying to pay down 30 years of household leverage.

A quickening process of further concentration of power and capital upwards, towards the eagerly awaiting open hands of the smiling money changers...

Sat, 05/10/2014 - 22:24 | 4747339 StychoKiller
StychoKiller's picture

Shin Chan's got ya covered... :>D

Sat, 05/10/2014 - 21:15 | 4747113 cowdiddly
cowdiddly's picture

And what is even more unbelievable is there are actually buyers for the Jap 10 year paying=wait for it- 0.61%- "Gee Wilikers Wally a whole 61cents" Now easy there Beave, don't go down there and blow it all on penny candy, you might ruin y our dinner" AHAHAHHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

Oh and that Bastion of Breadlines Spain 10 year 2.88% last i checked

And lets not leave out good ole Uncle Sambo at 2.59% wow. where do I sign?

We have truly entered a GLOBAL LOONEY TUNE LAND. abadee, abadeee, abadee="Thats All Folks"

Sat, 05/10/2014 - 21:16 | 4747147 Cognitive Dissonance
Cognitive Dissonance's picture

Insanity peaks (peek-a-boo) just before the rush to the exits.

Sat, 05/10/2014 - 21:29 | 4747185 CrashisOptimistic
CrashisOptimistic's picture

Horrendous growth drags yields lower.

If there's no demand for loans, you can't raise their price.

Sat, 05/10/2014 - 21:41 | 4747224 fonzannoon
fonzannoon's picture

I believe people will hold bonds with a negative interest rate if that is what they are paying.

Sat, 05/10/2014 - 23:08 | 4747305 cowdiddly
cowdiddly's picture

Yes they will go negative. But its not people who are buying them. These western global central banker idiots have all lashed their selfs together to try to continue the charade a few more years and praying global growth picks up somewhere so they can bail the others out. Is a Big Giant Cirle jerk. Begium and EU CBs  buying all the UST they stand, the miss Wantabe of Japan is buying EU bonds hand over fist. I dont know who is buying this Japanese trash but I can imagine its not the Japanese citizens as we are being told and probably being done in shadow banking. Someone from the US or Brussels landing in Tokyo lately?

Dear Japanese Central Bankers,

We have provided for your staff perfectly good Hari Kari knifes with a full expectation that if the need arises that they would be available for you. And knowing how important it is to your culture to "Safe Face"........well yes its the only honorable thing to do. Plese feel free to pass this letter along to the managers of Teppco.

If the currently circulating Yen note still has less zeros than the postage stamps, you could take the liberty and fire a cc to Von Rump Roast and the Dragman over in Europe also.

And don't be google worldin carrier locations like the last time. I have kinda grown tired of island life, and you can only do the coconut and banana thing for so long before their effects become known.

Your most humble associate

Cow

Sat, 05/10/2014 - 22:58 | 4747407 CrashisOptimistic
CrashisOptimistic's picture

Sure.  Why not?

As long as they are more negative next month, you make a profit.

Sun, 05/11/2014 - 03:46 | 4747646 Serenity Now
Serenity Now's picture

That's a good answer.  I was going to say Sure, why not, if you know there will be no more growth?  Yours provides better clarity.

Sat, 05/10/2014 - 21:06 | 4747121 Fluxite
Fluxite's picture

where did all that money go?

 

 

Sat, 05/10/2014 - 21:12 | 4747138 IronShield
IronShield's picture

Blow and Whoes?  Excuse me, Blow and Geishas.

Sat, 05/10/2014 - 21:15 | 4747145 seek
seek's picture

Carry trades that went to other economies would be my first guess.

Sat, 05/10/2014 - 21:25 | 4747175 CrashisOptimistic
CrashisOptimistic's picture

5 million barrels per day of the good stuff at $108 Brent per b -- out exhaust pipes.

Sat, 05/10/2014 - 23:03 | 4747422 CrashisOptimistic
CrashisOptimistic's picture

They converted those yen to dollars in order to buy that oil.

This is getting more amazing every day.  Not the money stuff.  That can be defined by decree.

No, I mean why are the Saudis taking that shit and sending them something that has actual value.  They should be just leaving that underground for the next generations.  If Japan wants it, they can send rice, or geisha girls or something.  Something that would have actual function in society.

Sun, 05/11/2014 - 00:07 | 4747515 Poor Grogman
Poor Grogman's picture

There will be no negotiation with Terrorists...

Sun, 05/11/2014 - 03:50 | 4747648 Serenity Now
Serenity Now's picture

I guess the Saudis turn around and buy something of value like weapons, planes, funding who-knows-what in other non-friendly nations, etc.  My understanding is they don't much care what happens to their people/society.

Sun, 05/11/2014 - 06:47 | 4747715 BigJim
BigJim's picture

The Saudis keep taking USD in exchange for 'their' oil because if they don't, the US will give Al Qaeda all the weapons and support needed to overthrow them and install a more compliant regime. The same goes for any of the OPEC dictatorships, oops, my bad, I meant monarchies.

The ironic thing is, the more unpopular a regime, the more tenuous their cling to power, the more the US can depend on that regime doing what they're told.

Sun, 05/11/2014 - 09:21 | 4747851 Offthebeach
Offthebeach's picture

War by political means. The political enemy of my political enemy is my friend. My dear, close friend. Until,......

Sat, 05/10/2014 - 21:37 | 4747211 hooligan2009
hooligan2009's picture

amongst other things, it went on establishing the japanese car industry with a subsidized exchange so that every other countries car businesses (except germany's) went bankrupt. it also went on bailing out banks that collapsed at about the same time as the nikkei (peak 39,000 v 14,000 now, albeit off a low of 8,000 a few years ago). 

it also went on protecting rice production at home by paying massive subsidies for domestic production and preventing any immigration so that Japan's racially and sexually bigoted (over the hill and zombie like) poltiburo could continue to support its own family businesses with transfers from tax payers.

what it couldnt raise in taxes it financed gradually with 5-7% fiscal deficits for a few decades.

sound familiar? pretty much like the socialist government in US and Europe, mind you the japanese are way ahead of the decadent and uncouth west in terms of aging demographics, welfare spending and of course, living beyond their means by actually producing nothing much that anyone wants (unless it is subsidized so that people can afford to pay - as in vendor financing).

just another mobocracy, or should i say "yakuzocracy". 

Isn't it odd that QE from one country actually detracts from the QE of another country since its purpose is to create an unfair adavantage for the QE'er? bleh

Sat, 05/10/2014 - 22:47 | 4747385 Overfed
Overfed's picture

I dunno. It's pretty tough to think of any consumer product that the Japanese make that anyone else makes better.  I don't buy Toyota or Honda because they're cheaper than Chevy or Chrysler. I buy them because they are vastly superior. Compare a Harley with a Yamaha or a Honda. Harleys are overpriced, unreliable, shakey junk by comparison.

The Japs kill us 'cause generally speaking, they make better products. Or at least they used to.

Sat, 05/10/2014 - 23:26 | 4747468 Oldwood
Oldwood's picture

Then we shouldn't complain when we have no jobs....I mean after all, we drive superior cars that we just can't pay for anymore. MOAR public transportation

Sat, 05/10/2014 - 23:37 | 4747479 Overfed
Overfed's picture

I buy American, when I can find it, when American is better. Tools, speakers, appliances, and a few other things are still best when US made. Unfortunately, when it comes to cars and motorcycles, Japanese are the best.

However, if the Japanese ever decide to market 3/4 and 1 ton full size diesel powered pickups and SUVs here, you can kiss what's left of the big 3 goodbye.

Sun, 05/11/2014 - 00:04 | 4747511 Oldwood
Oldwood's picture

just bought a ram 3500 diesel and am fairly impressed. American cars are catching up.

Sun, 05/11/2014 - 06:53 | 4747719 BigJim
BigJim's picture

Spending more money on inferior products actually destroys capital. Money you spend on inferior US-made goods is money you haven't got to spend on decent US-made goods.

Furthermore, if 'we' hadn't imposed the USD on the world via Bretton Woods back in 1944 and establishing the petrodollar back in the early '70s, the Japs would only be able to spend the USD on US products and services.

As it is, it is impossible to have the world's reserve currency and have anything other than a trade deficit. (Triffin's dilemma) Great if you're in the 0.01%... not so great if you're a working schmoe.

Sun, 05/11/2014 - 20:54 | 4749438 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

I have an 2008 IS-F, 2005 LS400, 2009 IS250 and and 1996 SC300 on the way for my son and it's not because i'm looking to make some sort of economic statement to my neighbors, it's because those cars run forever with minimal maintenance costs.  

Sat, 05/10/2014 - 21:09 | 4747130 drinkin koolaid
drinkin koolaid's picture

Bullish!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Sat, 05/10/2014 - 21:16 | 4747149 Dead Man Walking
Dead Man Walking's picture

No problem do what we are doing.  Let in 20 million illegal aliens, and collateralize them at 750k each (like we do) and voila, 15Trillion more you can borrow from the fed.

You don't own yourself -- the Federal Reserve does.

http://www.viewzone.com/collateral.html

Sat, 05/10/2014 - 21:17 | 4747150 Robert.Paulson
Sat, 05/10/2014 - 21:23 | 4747154 WTFUD
WTFUD's picture

The steep incline of the graph reminds me of the Eiger Sanction ( very few of the climbers survived that. . )

Sat, 05/10/2014 - 21:35 | 4747201 Keyser
Keyser's picture

Looks a bit like the US debt charts too... 

Sat, 05/10/2014 - 21:19 | 4747155 Milton Waddams
Milton Waddams's picture

It looks like the 2012-2014 surge put the balance sheet back in trend.

Sat, 05/10/2014 - 21:24 | 4747172 BullyBearish
BullyBearish's picture

When the 1/2 life of the country is only 30 years, it's time to pull out all the stops

Sat, 05/10/2014 - 21:32 | 4747193 q99x2
q99x2's picture

I want to print money damn it.

Sat, 05/10/2014 - 21:46 | 4747242 IronShield
IronShield's picture

Move to Canada.

Sat, 05/10/2014 - 21:36 | 4747204 ironmace
ironmace's picture

Time for Seppuku.

It's the only honorable thing to do.

Sat, 05/10/2014 - 23:08 | 4747233 Seek_Truth
Seek_Truth's picture

Japan Debt Update: ¥1,020,000,000,000,000

Tepco “Total tritium in Fukushima : 3,400,000,000,000,000 Bq”

So sorry. Preese no worry.

 

Sat, 05/10/2014 - 21:52 | 4747257 PennilessPauper
PennilessPauper's picture

I love the smell of Ponzi Scheme, Central Banking systems in the morning!!

 

Sat, 05/10/2014 - 21:56 | 4747267 starman
starman's picture

The more the merrier! No? 

Sat, 05/10/2014 - 21:59 | 4747278 hairball48
hairball48's picture

And total US debt, public and private, is what?

Our turn is coming.

Gold and silver bitchez!

Sun, 05/11/2014 - 03:44 | 4747645 Seek_Truth
Seek_Truth's picture

"'They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD's wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin." - Ezekiel 7:19

Sat, 05/10/2014 - 21:59 | 4747280 lindaamick
lindaamick's picture

A preview of things to come in the US.  The question always is:  how long will the consensus support the current system?

As wealth accumulates in fewer and fewer hands, those hands want the status quo.  If confidence in the system remains even if the National Debt is $1Gazillion, it won't matter.   Things can chug along. 

The more money around, the more weaponry and force that can be used to perpetuate stasis.  

Until people have no food we can rock along indefinitely.

Sat, 05/10/2014 - 22:10 | 4747302 hairball48
hairball48's picture

"If confidence remains...."

I don't believe things will be able to keep chugging along as long as you do.

:)

Sat, 05/10/2014 - 23:30 | 4747474 Oldwood
Oldwood's picture

Legalize more dope, confused is the new confidence. When it comes down to it, it really doesn't take much to distract us or just buy us off for while.

Sat, 05/10/2014 - 22:14 | 4747313 yogibear
yogibear's picture

Japan is the US Federal Reserve's  grand printing experiment. Once Japan does Zimbabwe, the US isn't far behind.

Sat, 05/10/2014 - 22:16 | 4747317 CouldBeWorse
CouldBeWorse's picture

Remeber when we would say with amazement,  "That's Billion with a B" ?    I guess Q is the new B.   That's Qaudrillion with a Q.    Once debt reaches Avagadro's number  ( roughly 6 with 23 zeros after it) the universe will collapse back on itself.   We will all be really, really close to each other and Central Bankers will be telling us with just a little more QE they can  reinflate it...or at least bring it in for a soft landing.

Sat, 05/10/2014 - 22:27 | 4747346 FieldingMellish
FieldingMellish's picture

Googolplex.

Sat, 05/10/2014 - 22:25 | 4747343 FieldingMellish
FieldingMellish's picture

Even moar hockey stick. Hockey stickier?

Sat, 05/10/2014 - 22:30 | 4747354 El Hosel
El Hosel's picture

Good thing size does not matter in the new normal... otherwise, they and us would be fuked in a big way.

Sat, 05/10/2014 - 22:39 | 4747371 homiegot
homiegot's picture

Should turn out good for them.

Sat, 05/10/2014 - 22:42 | 4747375 medium giraffe
medium giraffe's picture

Quadrillion!!!  What a fantastic number!! QUADRILLION!!!  Hahahahahhahahahaha (were so fucked).

Sat, 05/10/2014 - 22:50 | 4747390 FieldingMellish
FieldingMellish's picture

Almost as big as the total interest rate derivative exposure of all the major TBTF banks. All is well.

Sat, 05/10/2014 - 23:07 | 4747404 medium giraffe
medium giraffe's picture

For sure!  Can't remember the exact figures, but top 13 banks rocking 6/700T deriv. exposure? Big badda boom.

Sun, 05/11/2014 - 15:21 | 4748556 Moon Pie
Moon Pie's picture

What comes after Quadrillion?  That should be in a few weeks.  Is it Quintrillion?

Egads.

Sat, 05/10/2014 - 22:43 | 4747376 cz85b
cz85b's picture

And yet, even with the bullshit numbers we use here in the US regarding the US debt, when one factors in the difference in currency value, the US STILL has more debt.. (the equivalent of like 1.6 quadrillion yen)

Then, factor in all of the unsecured liabilities we would need to multiply that figure by like 80 or more...

Something tells me that Zimbabwe is closer than people think, just sayin.

Sat, 05/10/2014 - 22:50 | 4747391 Vuke
Vuke's picture

Could you put those numbers in ounces of gold please...

Sat, 05/10/2014 - 23:41 | 4747491 cowdiddly
cowdiddly's picture

think nanotechnology

Sat, 05/10/2014 - 23:05 | 4747431 Tenshin Headache
Tenshin Headache's picture

What is next after quadrillion? For that is surely on the way.

Sun, 05/11/2014 - 00:44 | 4747557 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Quintillion.  What the Rothschilds are worth (j/k).

Sat, 05/10/2014 - 23:31 | 4747476 nah
nah's picture

LETS DROP NUKES ON IRAN TO SHOW JAPAN WE ARE SERIOUS ABOUT THE FUCKING MONEY BITCHEZ

Sat, 05/10/2014 - 23:56 | 4747504 AdvancingTime
AdvancingTime's picture

The effect of a lower yen on exports is beginning to wane. When the yen drops faster than the Japaneses stock market rises it will no longer protect the wealth of those invested within its borders. Japan is the most indebted developed country in the world and its future prospects are dim and getting worse.

It is only a matter of time before the yen becomes worthless and as 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.It appears domestic investors have already started venturing overseas for higher yielding assets. When 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,

http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html

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