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Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High
Two days ago, when QE ended and knowing that the market is vastly overstimating the likelihood of a full-blown ECB public debt QE, we tweeted the following:
It's all up to the BOJ now
— zerohedge (@zerohedge) October 29, 2014
Little did we know how right we would be just 48 hours later.
Because as previously reported, the reason why this morning futures are about to surpass record highs is because while the rest of the world was sleeping, the BOJ stunned those few who were looking at Bloomberg screens with a decision to boost QE, announcing it would monetize JPY80 trillion in JGBs, up from the JPY60-70 trillion currently and expand the universe of eligible for monetization securities. A decision which will forever be known in FX folklore as the great Halloween Yen massacre.
In retrospect, the BOJ's announcement should have been anticipated. Recall that yesterday, the biggest non-story was the regurgitated headline that the Japanese Pension fund would boost its holdings of domestic and foreign stock from 12% to 25%, while slashing its Japan bond holdings from 60% to 35%, something that had been leaked previously. The full changes:
- Domestic stocks raised to 25% from 12%
- Japan bonds cut to 35% from 60%
- Overseas shares 25% from 12%
- Foreign debt 15% from 11%
But while Japan's eagerness to bet its retirees lifetime savings on GoPro had been well-known previously, it also meant that someone would have to step in and buy the hundreds of billions of JGBs the GPIF had to sell in what over the past year became the world's most illiquid bond market, often going for days without a single transaction.
That someone, a few hours ago, was revealed to be the Bank of Japan, which in addition to now clearly becoming the only buyer of only resort for Japanese bonds, has tipped its hands that it is going all in on pushing the Nikkei higher at all costs, even if it means crushing the domestic economy, something which even Keynesian "experts" say will be the outcome if the Yen continues to slide below 110 for the dollar.
So for all those wondering why futures are back to all time highs, here is the reason:
- ITALIAN SEPT. UNEMPLOYMENT RATE RISES TO 12.6%, MATCHING RECORD
No wait, sorry, that's reality - something that hasn't mattered to markets since 2008. Here is the reason, all thanks to CTRL-P:
- KURODA SAYS EASED TO MAINTAIN POSITIVE CHANGES IN EXPECTATIONS
- KURODA: TODAY’S DECISION SHOWS BOJ’S UNWAVERING DETERMINATION
In other words, several days after Larry Fink mysteriously visited Abe, the BOJ announced it would do everything in its power push the Nikkei into green for the year, which it did with its announcement overnight, and to truly crush the local population's buying power.
Kuroda also had some truly comedic one liners:
- KURODA: DON'T THINK EXIT FROM EASING WILL BE DIFFICULT
And now that Japan has gone all in on runaway inflation, we expect that Abe's reign of terror to be cut short as finally the people's anger at this Keynesian madman on top of it all will finally explode.
The good news in all of this is that the desperation is increasingly palpable, and since Japan is about to go pro in deflation exporting to the US and mostly Europe, expect even more violent reprisals from the world's other central banks and so on until finally it is only central banks left trading with each other. Much like today.
In the meantime, here is what is going on:
- S&P 500 futures up 1.2% to 2011.6
- Stoxx 600 up 1.4% to 335.5
- US 10Yr yield up 1bps to 2.32%
- German 10Yr yield down 1bps to 0.84%
- MSCI Asia Pacific up 1.3% to 142.2
And the punchline:
- Gold spot down 2.2% to $1172.3/oz
Because in the new normal diluting your currency even more is even more negative for undilutable currencies.
Some more details on what the latest massive central bank intervention did to what only laughably can one now call "markets" via BBG: European shares rise with the bank and financial services sectors outperforming and media, retail underperforming. Asian stocks rise led by Nikkei as Bank of Japan’s Kuroda raises stimulus to another record. Euro-area inflation data matched forecasts. Companies including RBS, WPP, IAG, Banco Popular, BNP, AB-InBev released results. German Xetra trading halted by computer malfunction. The French and Italian markets are the best-performing larger bourses, Swedish the worst. The euro is weaker against the dollar. French 10yr bond yields fall; Irish yields decline. Commodities decline, with silver, gold underperforming and natural gas outperforming.
Bulletin headline from Bloomberg and RanSquawk
- The BoJ takes centre stage overnight after unexpectedly increasing their QQE programme by JPY 10trl, sending the Nikkei 225 surging higher by 4.8% to its highest level since 2007, the e-mini S&P through 2,000, USD/JPY above 111.00 to its highest level since Jan’08 and spot gold to its lowest level since 2010.
- ECB’s Nowotny lifts Bunds after deviating from his usual hawkish script by adopting a never say never approach to an ECB QE programme.
- Looking ahead, attention turns towards US personal income & spending, Chicago PMI and Univ. of Michigan confidence.
- Treasuries extend second week of losses after Fed ends QE as Bank of Japan expands what was already an unprecedentedly large monetary-stimulus program, boosting stocks and sending the yen tumbling.
- BOJ, which also cut its forecasts for inflation and growth, voted to raise annual target for enlarging the monetary base to JPY80t ($724b), up from JPY60t-JBP70t
- Japan’s $1.1t Government Pension Investment Fund announced it will put half its holdings in local and foreign stocks, start investing in alternative assets and cut its domestic bond allocations to 35% of assets from 60%
- Euro-area inflation rose 0.4% in October, up from a five-year low in October and in line with median estimate in Bloomberg survey; a separate report showed unemployment holding at 11.5% in September
- Russia’s central bank increased its key interest rate to 9.5% from 8%, more than forecast, bringing it to the highest level since it was introduced 13 months ago to halt a currency run that’s stoking inflation
- Chinese bank deposits dropped following a crackdown on lenders manipulating their numbers and “illicit” means of attracting money, threatening to weigh on credit growth and hinder efforts to reignite the economy
- Hong Kong protesters said they may attempt to visit Beijing next week to seek talks with China’s top leaders while the nation plays host to a global summit
- Lloyds Banking Group Plc may still register Scottish Widows Plc, its 200-year-old Scottish insurance division, in England even after voter rejected independence in a referendum last month, said two people with direct knowledge of the deliberations
- Critics and allies agree Israel PM Netanyahu has much to gain on home front by defying Obama; the latest falling-out was sparked by Israel’s plan to build more than 1,000 homes for Jewish residents in areas of Jerusalem the Palestinians claim for their hoped-for state
- Sovereign yields mostly lower. Asian stocks surge, led by Nikkei +4.8% to highest in seven years. European stocks, U.S. equity-index futures gain. Brent crude lower, copper -1.1%, gold -2.2%
US Event Calendar
- 8:30am: Employment Cost Index, 3Q, est. 0.5% (prior 0.7%)
- 8:30am: Personal Income, Sept., est. 0.3% (prior 0.3%)
- Personal Spending, Sept., est. 0.1% (prior 0.5%)
- PCE Deflator m/m, Sept., est. 0.1% (prior 0.0%); PCE Deflator y/y, Sept., est. 1.5% (prior 1.5%)
- PCE Core m/m, Sept., est. 0.1% (prior 0.1%); PCE Core y/y, Sept., est. 1.5% (prior 1.5%)
- 9:00am: ISM Milwaukee, Oct., est. 60 (prior 63.18)
- 9:45am: MNI Chicago Business Barometer (purchasing managers), Oct., est. 60 (prior 60.5)
- 9:55am: UofMich. Consumer Sentiment Index, Oct. final, est.86.4 (prior 86.4)
ASIA
JGBs trade up 6 ticks at 146.68, after paring their earlier sharp gains as Japan's GPIF panel approved cutting JGB allocation to 35%, according to sources. Prices touched a fresh record high after the BoJ unexpectedly increased its JGB purchases by JPY 30trl per year. The Nikkei 225 closed up 4.8%, at its highest level since 2007, after the BoJ unexpectedly increased their QQE program. Furthermore, the index was also supported by reports that Japan's GPIF panel approved raising domestic stock holding to 25%, according to government sources. The Hang Seng closed up 1.3% after opening at its best levels since Sep. 25, while the Shanghai Comp closed up 1.2%, both indices bolstered by several upbeat corporate earnings.
FIXED INCOME & EQUITIES
The aforementioned action taken by the GPIF very much set the tone for the European open, with cash futures opening firmly in the green (Eurostoxx 50 currently +1.7%). On a sector specific basis, financial names lead the way for Europe following strong earnings reports from RBS (+3.4%) and BNP (+3.9%). However, gains for the sector have been capped following further downward momentum for Italian banks after Moody’s have initiated a review for a potential downgrade on various peripheral banks.
Despite opening lower, the downside for Bunds was short-lived following some comments from ECB’s Nowotny who went against the grain of his usual hawkish rhetoric, more specifically, the central banker said never say never to QE in Eurozone, while refusing to rule out expanding the purchasing programme to include more corporate bonds. This saw a gradual turnaround in Bunds as they broke above 151.00, with further positive sentiment provided by, a weak German retail sales report and the fact that the GPIF have increased ratio of foreign bonds to 15% vs. Prev.11%.
FX
The main focus for FX markets today has been the broad-based USD strength which has dominated a bulk of the price action in FX markets and pushed JPY lower against its major counterparts with USD/JPY breaking above 111.00 to reach its highest level since Jan’08. Elsewhere, NZD saw some strength overnight after Fonterra announced that China has lifted its temporary suspension on base powder exports which has been in place since August 2013. Despite initially, being out-muscled by the greenback, the RUB clawed back some ground after the Russian central bank unexpectedly hiked rates by 150bps, with the market looking for just a 50bps cut. However, the move lower in USD/RUB was capped by the bank not abolishing rule-based interventions.
COMMODITIES
Movements in the USD-index have dictated the state of play for the commodity complex, with spot gold falling to its lowest level since 2010, while both WTI and Brent crude futures reside in the red. For base metals, copper is poised for its first monthly advance since July ahead of tomorrow’s Chinese official PMI release with the red metal benefitting from improved Asian investor appetite. More specifically for energy prices, Brent crude is heading for a sixth consecutive loss which would be the longest decline since 2002 as global supplies and the stronger USD continue to weigh on investor sentiment.
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What ? No comments? Am I first!! <giggles like a school girl>
Stuck the landing.
Who said you should never go full retard? In for a yen, in for a gazillion.
I predicted 130 yen to USD by mid '15.
I like my odds. Now the ECB is really going to feel the heat like never before to debase the euro, which will in turn put massive pressure on PBOC to debase CNY.
Export-dependent nations are all going to have to massively debase their currency or face a literal big D Depression.
Gotta love the CB circle jerk now set in motion.
The currency toilet bowl swirl just jumped to warp 8. Scotty, I need moar power.
Happy HORRORWeen bitchez!
Oh thank god they are going to buy S&P mini contracts.... Infinity here we come! Thanks Barrry.
who the fuck is japan?
they are the country that will be fleecing the US middle class 401Ks as every one goes full tilt biotech.
Japan is experimenting with monetary orgy....those fuckin guys think this is as creative as making porn.
KURODA: DON'T THINK EXIT FROM EASING WILL BE DIFFICULT
There will be no exit...but there will be an event on the horizon....China wont be happy with this.
Its going to be a tag team of heavy weights duking it out...CHINA/RUSSIA vs JAPAN/USA....Europe is just a fuckin useless spectator
The central banks have long since passed the point of no return with QE. Only two options from here on out-
1) Keep the QE good times rolling or
2) Let it all come crashing down.
They will continue to print to juice the world markets which in turn prop up the entire construct until an outside event comes or is created which can be blamed for pulling the rug out from this whole thing.
Wait, watch and prepare is all we can do.
Who didn't see this coming? It's QE whack-a-mole. Japan will go on for quite some time, then Europe is next. China will take a turn, Then QE4 in the US. And then ...... Japan!!
What amazes me is that Japan has been at this foolishness for 25 years. In the mid 1960s Japan was a country that just made cheap toys and transistor radios. The amount of capital produced and stored in Japan from 1970 to 1990 must have been immense. Perhaps with a different American policy choice some of that immense wealth might have been generated in the US during that time.
Abe be like...
(opens in new tab)
With all of the mox in the air make that full tilt depends.
Step back for a moment and realize we are watching Japan knowingly print it's currency to oblivion (to be followed by the rest of us). Not in some moldy old textbook, not in some 3rd world nation run by triabal warlords, but right in front of our eyes in real-time.
I just didn't think there would be so much cheering.
What else can you do but sit back and laugh at this shit? I guess you could cry
....or maybe buy the subsidized gold.
An ode to a Japanese trick
The futures are ramping and quick
The ECB treat
Was just a deceit
My God, but our markets are sick!!!
Can I get the 'HICKORY DICKORY DOC' version of that?
A shocker from Mr. Kuroda
gives the crisis a new, sadder coda
Our natural rebuff:
What the hell is that stuff
he’s been smokin’ inside his pagoda?
Who has Dennis Gartmen's newsletter? Wasn't he long Yen and long Gold?
Inquiring minds need to know -
/s/
I didn't see that coming! The FED has used BoJ as a QE proxy!!!!
Fucking clever motherfuckers!
greenspan's cronies sold you all their gold 2 days ago
insanity is the new normal.
"I just didn't think there would be so much cheering."
Well, 'investors' are eseentially MORONS---esp. those of a PINKO COMMIE FASCIST bent.
<---------PHOTON TORPEDOES
Cog's, a repost of a START WRECK skit from '13 http://www.zerohedge.com/news/2013-06-13/sea-redCAPTAINS LOG STARDATE: THIRTEEN. ZERO SIX. TWO ZERO ONE THREE.
The Enterprise was passing the solar system when starfleet alerted us to a faint primitive radio distress signal emanating from the eastern region of the third planet......
KIRK:"Get a fix on the transmission source Uhura"
UHURA:"Captian,the radio signal seems to primarily coming from the east.....location fixed.....Tokyo,Japan"
KIRK:"TOKYO,JAPAN?"
UHURA:"Sir,i'm running it through the universal translator"
KIRK:"What do you make of it Spock?"
SPOCK:"Fascinating.......Captain, the central japanese authorities report they're no longer in control of their financial markets,they have promised to devalue the yen for some time by doubling the monetary base in attempt to restart the economy and to kill the deflation plaguing they're entire continent.
KIRK:"Deflation?...........put in on main viewer Sulu"
http://www.bloomberg.com/quote/NKY:IND/chart
KIRK:"AMAZING................Absolutely amazing Spock"
SPOCK"Yes......although highly illogical,Captain, in a futile attempt to cause inflation by risking extreme money printing the BOJ and MOF have failed they're intended mission and have now lost all crediblity",
KIRK:"McCOY,they've done the unthinkable.......... they've attemped The_Corbomite_Maneuver straight out of my playbook.... ....poker Bones dammit.............poker"
McCOY:"Dammit Jim i'm a doctor not banker"
ENSIGN:"Captain ,may i suggest the following,if we beam down a quadrillion yen in paper currency would that not cause the price level to rise"
KIRK:"That may be a long shot,........Scotty have transporter standby and beam down one quadrillion yen in bills"
SPOCK:"Captian....the Enterprise may not have sufficient power to print one quadrillion yen in paper bills even if we divert all auxillary power to transporter bay.May i make an alternative suggestion, if we link the ships main computer with the BOJ's we could theoretically print unlimited amounts electronically"
McCOY:"SPOCK, ARE YOU OUT OF YOUR VULCAN MIND? THAT MAY BE INTEREPERATED AS HOSTILE ACT"
KIRK:"SCOTTY.....delay that order"
SCOTTY:"Aye Captain"
KIRK:"Dammit......SCOTTY,have transporter beam up the entire crew of the BOJ directly to sickbay"
....qe-ontinued
well done
wow. this morning, nail = gold
We all knew this was coming prior to the elections. I am beginning to hear "it ain't real" from the 401k crowd. I am curious if there is some "blowback" coming from this on Tuesday; is this a positive for Republicans? Gas has crunched and stawks have to the point that we may see havoc DEC 5TH?
Your enthusiasm has been noted and you have been issued an up-vote!
I have the newsletter.....it came free with my Obamacare.
That's because nobody cares. Everyone's still absorbing the fact, from the previous article, that Putin is the true leader of the (actual) free world.
By the way....I love titties...
Two words - Kyle Bass
We are in the final throes of the economic desparation before the convulsions begin. Fascinating.
Any ideas on what happens next? I mean, who else is going to crank out more funny money?
Not the final throes but the moves leading up to it.
It's just the start of the currency wars/race to the bottom. Japan is first because they have to be first. Then it will be others and finally the US dollar that goes full retard and ends this silly debt based house of cards.
Then the real hell will be unleashed.
it's no coincidence that the same country who fought WW2 with kamakaze tactics is the 1st to do so with its economy. these are the final throws of the currency war, CBs are losing, and it's going to end with a bang.
take that to the bank.
This time they wont just commit Harakiri, but will stick the Katana up the ass of the whole world!
The Sampson option from the Japs?
Yep. And everyone who participated/enabled this farce the past 5 years will not be safe....
"Any ideas on what happens next? I mean, who else is going to crank out more funny money?"
Whatever nations relying on exports as relatively high % of GDP relative to overall GDP are going to necessarily have to debauch & debase their currencies, and to anally rape their domestic citizenry, at this point, in order to avoid suffering massive economic contraction (it's as certain as a rule in mathematics).
Japan just officially set off the race to debase currency wars among export-dependent nations in a huge way.
The shrot across the brow.
Next?
before we take our last gasp of breath...Krugman wants to apologize.
http://www.nytimes.com/2014/10/31/opinion/paul-krugman-apologizing-to-ja...
"All men are ingrates," sneered the cynic. "Nay,"
The good philanthropist replied;
"I did great service to a man one day
Who never since has cursed me to repay,
Nor vilified."
"Ho!" cried the cynic, "lead me to him straight —
With veneration I am overcome,
And fain would have his blessing." "Sad your fate —
He cannot bless you, for I grieve to state
This man is dumb."
Ariel Selp/Devil's Dic.
A glimpse of Japan's trading partners should answer your questions.
While not a chart, there is a table:
http://www.tradingeconomics.com/japan/exports
Silly willy will be there to calm your withdrawls, Capt Jack will get you high tonight.
"We are in the final throes of the economic desparation before the convulsions begin." -- Said my father in 1971...
It's all Bullshit!!!
that which can't be paid back, won't be paid back
maybe they dont expect it to be paid back.
Maybe the yield is all they're really counting on.
Japan continues to slide towards an economic abyss with each passing day. The writing is on the wall. Japan is facing a wall of debt that can only be addressed by printing more money and debasing their currency. This means paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands at around 230% of its GDP and is the highest in the industrialized world.
The moment the Japaneses stock market fails to rise enough to offset inflation this will turn into a tsunami of money fleeing Japan and constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html
What, no comment yet about rearranging the deck chairs on the Titanic? Endlessly borrowing money is not an economic policy but an addiction.
Ain't no stopping us now! To da moon! DOW 18,000 here we come.
This can not come as a suprise, when all you have is a hammer, everything looks like a nail.
These central banker MF'ers have just started firing off the really big confetti fiat cannons.
Buckle up!
I thought how cynical can one get? Tyler called it.
I thought how cynical can one get?
More than all the hope and change in the world I'm thinking.
I've got a call into Ron Klain.....but I haven't heard anything back yet.
Klain last seen hiding under Resolute desk with a pair of scissors in his hands & a cigar up his @ss
Well.....that's actually a lot more than I was expecting him to do.
Here in Asia we have a huge property bubble.
Thailand is headed for trouble! I live in a building that is 6 years old, on the ocean and only 20% full. Russian buyers are gone and projects have stopped in mid stream. This is real!
I am renting and waiting for lower prices!
DEFLATION! Asia is in real trouble from Fiat hot money!
I have owned an apartment complex in the Midwest for many years and we are currently experiencing the largest number of vacancies we have ever had. Many houses in the area are empty or under leased. In 2005 and 2006 prior to the housing collapse many people were looking at second homes, for investments or as a vacation getaway.
Today many of those people have shed the extra homes and some have doubled up with family or friends reducing the need for housing. We are pushing on a string and calling it demand when someone who can barely pay the rent is encouraged by the government to buy a house they can neither afford or maintain. We have a shortage of "qualified" buyers and renters. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/12/super-low-interest-rates-disservive-to.html
Hot money in Asia alright.
We have had 500% price growth in five years in many parts of Bali. With huge vacancies and more projects building by the day.
P.s. We can send the Russians back if you would like?
It's called blowing your wad.
No sloppy seconds Germany?
Sum ting Wong
Hey, the past 30 years of easing in Japan worked out so well, whats another ¥10T. The people of Japan are too docile to do anything about it.
The odd nail gets hammered down over there.
A key point made in this article is who is buying what!
This does not bode well for the people of Japan going into the future.
I am not really sure if this is being given the attention it needs.
Something evil this way comes......
Hot money in Asia has doomed it to a real crash.
Why bomb people when you can distroy them with debt?
Fucking tribe is going to start a war.
I can feel it here in Asia. It's on!
Oh yeah.....it's on.
We shall go on to the end. We shall QE in France, we shall QE on the seas and oceans, we shall QE with growing confidence and growing strength in the air, we shall defend our ponzi, whatever the cost may be. We shall QE on the beaches, we shall QE on the landing grounds, we shall QE in the fields and in the streets, we shall QE in the hills; we shall never surrender
I do not like Green Bux & Ham
Listen.
Whats going on bro?
"Cry Havoc!", and let slip the dogs of.. seniorage?
https://www.youtube.com/watch?v=C9QAwUFAYfE
seigneurage
Shocking? No. Expected? Yes.
Cannot it be both? Imagine wearing an orange jumpsuit and sitting on your knees in the sand. You fully expect it but there is still a shock to your system as the knife begins to saw away at your neck.
they are doing this because everything is just peachy /s
Morons got punk'd. lulz
looks to me that GPIF is left holding the bag as everyone dumps all their toxic European Bonds into its lap, if the ECB has any sense it will use this opportunity to get rid of all the shit they have been holding to GPIF as well.
it does seem kind of noble for the japanese to sacrifice themselves for the sake of the global economy. at least, with the ruin of that collapsed radioactive wasteland the rest of the world will be left in a slightly better off financial condition... until new debt is piled on top, again.
Thanks to Dishonest Abe my short gold options exploded in value this morning. Domi Arogato.
Good for you. Now go pile your proceeds into lining your pockets with moar physical like the rest of the 'non~Philistines'
Closed my GLD position. I expect it to go down further but am satisfied with my profit.
Off topic:
About a week ago I looked up to the sky and noticed a bright light. It was daytime and wondered how it could be a star or a planet, it was much too bright during the day.
After a couple of minutes, I could see that it was stationary and the light was reflecting off of what I was seeing.
After some observation, I could see that it was a craft with two sections and was probably at an altitude of 80,000 feet. I turned at an intersection onto a road to stop and get out of my car to get a better look at what I was seeing, but the flying object began to move. Before I could stop, it was gone from sight.
It was white, geometric in shape and was definitely a heavier than air flying craft.
Two days ago, I saw the same thing in the same position in the sky, but the clouds were obscuring the view I had, so it disappeared before I could really make out what it is.
Whatever powers the craft must be from a source that is unkown to many.
I know what I saw and could not believe my eyes at what I was actually observing.
It's out there and is doing more than just flying around for fun.
Sometimes I sits and thinks, other times, I just sits.
You my friend were, QUACKERSNATCHED
80,000 ft.? It had to be the single malt, bourbon only flies to about 50,000 feet. Now if it flew across your windshield, it was Budweiser. If the craft actually landed and took you aboard for an anal probe, then it was probably Anejo, and you were outside a medical marijuana joint in Colorado.
If it landed and abducted him for a good Obama anal probing it was Absinthe...
TideFighter, you gots to take his post seriously. its the return of the Annunaki man ! They have come back for more gold to power their spacecrafts. Boy are they in for a surprise!!!
Hope they have a boxwood stove backup in those saucer things so that they can burn all that papper we now call gold !!!
Mulder called, he said its time to take a break from peyote.
To be able to accurately tell the altitude of an object, you have to have some sort of reference. Most of us who have seen large airplanes up close have a good, instinctive idea of how big one is. Therefore, it is by the relative size of the plane (farther away= higher= smaller) that we determine an estimate of its altitude.
if you saw something you had never seen before, high in the sky, you have no frame of reference, unless you can juxtapose that object with some other known reference, such as a human airplane , contrail, or cloud formation that can help you to determine the object's relative height above the earth.
If it was a clear day with no clouds, contrails, or airplanes, you are just making shit up about how high the object was.
I believe you saw something. The world is a strange place. It could have been any number of inflated economic indicators, filled to capacity with hot air and lies and QE and corrupt insider trading, in which case, 80,000 feet AGL is just the lower end of its range.
Stewie's got yo back.
http://www.youtube.com/watch?v=uOcvmTLTtNE
You wanna swap clones bro?
It was nice to book 1251 pips total today but .... Fook you Abe
Central banks and governments never "exit" from inflating their currencies--it's always a matter of how much moar.
I haven't traded usd/jpy in weeks, for fear that the BoJ would pull some batshit crazy full retard move like this. I hate to say it, but I truly think this is the beginning of the end for Japan.
This move should be short lived in the equity markets, and I don't see how any sane trader can look at the yen as any form of safe haven trade from this point on. Abe has completely screwed the population of Japan and it's export base into the ground. Rising input costs will outstrip any export cost advantages, and the world is in a recession.
Yen, your posts are informative.
Unfortunatley, the people of Japan really believe this is a good thing and, most importantly,
it would be the beginning of the end game if let to take its course, bottom of the ninth, but is JAPAN systemically important?
We know things of "systemic importance" get protected by the all powerful OZ.
Does Japan fall into this category?
The beginning of the end? The BEGINNING of the end? You would have to be pretty old to remember the beginning of the end for Japan.
Got to love fractional reserve banking. It LOOKS so good but when you take away the make up she is ugly.
Ebola somehow seems much less harmful than the clowns controlling the money levers.
Everyone and there mother's thinking the market is going to crash; almost seemingly the day after the end of QE.
Look what happens.
One way or another they will fuck you hard.
the day after the end of QE
Apparently someone forgot to tell Japan.
Do you really believe this is the end of QE?
Are you double dog sure?
Almost as if Shinzo is on the Fed's board by proxy...
Oh Wait!
Deflation is spreading around the world despite the efforts of the central bankers by trying to avoid it by printing currency.
Inflation is caused when the sum of credit outstanding and currency in circulation increases in comparison to the goods and services available and deflation is vice versa.
The credit outstanding worldwide is shrinking at a much faster rate than the rate at which the central bankers are printing money. The money being printed is just being used to roll over previous debts and is not contributing to job or small business creation which can actually cause inflation by giving a large portion of the population an increased purchasing power.
Moreover deflation is a natural process and is a result of increased productivity which ultimately benefits the majority of population by bringing down their cost of living.
http://www.marketoracle.co.uk/Article40231.html
Which exactly why they will print moar and Moar and MOar and MOAr until they print MOAR! There is no way they can let the majority benefit. That would mean TPTB are not getting their fair (lion's) share.
The beatings will continue until morale improves.
So if Japan QEs the US does not have to and the strong dollar can continue to punish hard assets.
Disproportionately at that.
Yen QE has everything to do with japanese assets and absolutely nothing to do with USD denominated assets.
Japan has a plan to impoverish retired people by design, so young generation does not have to produce goods and services for the old which would bankrupt the young generation.
Sounds right, but will it work in practice?
Yen inflation of food, energy etc, that old people need is going higher and higher.
Their savings are getting diluted
Fucking great news for young working on minimum wages or even unemployed!
PMs hammered again, will be a great Christmas.
Yeah.....if you live in Russia or China.
Aug 17 2007
Oct 18 2007
May 6, 2010
and now Oct 31, 2014
Come the zombie apocalypse, I think that there should be at least 4 names on anyone's list - although how this could be implemented in Japan I have no idea.
"Stock prices have reached what looks like a permanently high plateau.
Tonight we're gonna party like it's 1929.
when will someone come up with a theory that shows the correlation between QE and stock prices that says asset price inflation is a monetary phenomenon and that individuals need assets but are penalized by having to pay too much as a result of asset price inflation .... in other words, assets produce cash flow, inflated assets produce less cash flow and lower living standards...globally!
When debt is called money this is what happens. I believe Japans leaders are stooges for the bankster elite (along with all the western worlds stooges). This is now becoming a fight to the death of banksters against the rest of the world. They want it all. If this isn't clearly understood by individuals of the populations of the world, there is little hope for any type of freedom in the world for anyone.
It looks like the BRIC nations leaders have finally had enough and are starting to push back, but the pushing is tentative and weak, and we need to remember that the leaders of those nations have their own agendas.
Meanwhile the world is dancing to the banksters tune right on down to the military cadet with his head filled full of patriotic bullshit and the sheriff deputy cop feeling frisky with the power of the state at his back.
Looks to me, at least so far, the scoreboard is extremely one-sided, and all those cogs in the machine that are part of this infernal machine are gleefully bolstering their accounts while totally ignoring the pitiful little voice of morality and reason.
Don't it always seem to go that we don't know what we've got til it's gone..
Suppose you are built like a 98 lbs weakling and you are fighting a guy who is built like bodybuilder Ahnold. Do you go toe to toe and get knocked out or do you dance, juke, and give ground until he tires, even if it takes all friggin' day?
Just because the score is lopsided doesn't mean the team in the lead is going to finish the race.
Metaphors are best mixed with other metaphors.
Here in Thailand when the king dies and the NWO is ready they will turn this place lose and there will be war!
This place is powder keg ready to blow!
The socialists and the money/bank/old money
(yellow shirts)=Socialists
(red shirts)=old money
=WAR!
This is going to get real ugly!
So you are saying there is a real opportunity for shirt suppliers in Thailand?
Hyper Japan!
the reaction of gold and oil to this news is priceless
Fed must've known about this for weeks.
I hope things don't work out for the Federal Reserve and this house of cards falls down.
Life is full of surprises and things don't always go as planned.
Maybe ICBM workers decide to take action in their own hands.
Or possibly the great Yellen to Abe handoff (thanks for delivering those instructions Larry Fink). Because, in their global vision it doesn’t matter so much which of TPTB is doing the printing at the moment, as long as enough of them are, and that they remain in control of the process.
I hope we're not going to take this lying down?
Could we at least get on all fours with a blindfold and some lube?
Just lay on your stomach and bite the pillow.
Or
Work with knowing this is how things are going to be until the end and work with it.
Humm time for Mrs. Watanabe to get the *F* out of Dodge!! Oh wait...
Maybe there is a cultural factor here - it seems that:
http://en.wikipedia.org/wiki/Incest_in_popular_culture#Sibling_incest
It is OK to keep it all in the family per Manga and Anime patterns. To bad that the financial DNA might not adapt so well in the long run!
Everybody like QE
LMAO
But, possibly there’s some logic in this too. Just think how much fun it’s going to be using a GoPro to capture and post on ZH and YouTube all the future street riots resulting from this financial manipulation. Everybody is going to want one, especially if the Silver and Black (oil?) models are superseded by the Gold model.
There is something very demented with finacial markets the past few years. Gold has basically been falling since the onset of QE3 on the supposed realization that QE is not inflationary. Stocks on the other hand have rallied immensly as they are the direct beneficiaries of QE. So the Fed decides finally to put a stop to QE and what happens? Stocks rally back to the previous highs while gold takes a further bath. How could it be that something that benefits form QE is not affected from its termination while something that does not is hurt? If that is not enough, today the BOJ increased considerably the size of their QE sending the Yen reeling. Gold takes a further hit on the all-powerful correlation of gold to the Yen. Never mind that Japan is a minor buyer of gold. It's the correlation that counts.
All this says to me 2 things. First, there is an economic war going on between the US (and its subserviant nations) and the BRICS which the west is so far winning. If you are in the first team you get to enjoy low interest rates and stable currencies. The BRICS get the wrong end of the stick namely high interest rates and falling currencies. Second, the level of lunacy in the markets is at such an extreme that I think we are near the end of this madness.
West winning? Who is this monolithic "West"?
Include savers and the young and unborn in the "West democracies" along with the BRICs. More specifically it is TBTB in the West. They are trying to hang onto power. Ain't gonna work. Change of the guard is inevitable. Just not blatantly obvious yet. This thing ain't over.
that's why we're the deer in the headlights currently..we assumed "we're near the end of the madness". Time for a change in rhetoric til something actually breaks maybe? We've been punked for 5 yrs and I for one am feeling a bit of humility. F U C K !!
..and the smackdown in PMs continues with blatant printing, devaluing of currencies....all to keep them capped when theyre allowed to climb..
Patience. Very, very few weak hands left to cough up the physical. Propaganda is the rule of the day.
Never forget the US invented propaganda.....Hitler and Stalin used it.....but we still invented it.
China and Russia are acquiring vast amounts of gold.....yet the price is falling....does that seem right to you?
No but it continues, year after year.
Actually it sent from under $300 to over $1900 in about a decades time....we're somewhere in the middle right now....and everyone is printing money like a bunch of drunken sailors.
If your head isn't working....your eyes should be screaming at you.
actually, Gustav Le Bon, 1895, France invented propaganda with the writing of "the crowd"
Perhaps he invented the term or how it is applied but propaganda has been around for thousands of years.
Alexander "The Great" for example.
Yes, the paper price is getting reamed. But the premium for a Silver Eagle at APMEX is now 26%. Yes, I know APMEX isn't the cheapest place to buy the shiny, but still ...
This was teed up a long time ago. Further evidence that QE will NEVER end...it's simply a collusive tactic where the US, Japan, Germany, and the EU take the currency smackdown on a rotational basis. And since the US has an election to rig, the card fell to Nippon in this round.
The desperation is palpable. I am not generally up on speculation, but I see real difficulty for these clowns to hold this through 2016.
Bah! Paper money and digital zeros and ones are all just play money anyway. NO ONE thinks their savings are real do they?
WTF. Just do the fucking oposite of what you judge to be rational and sound, and you can't go wrong? Upside down cake, anyone?
From the movie Layer Cake
Eddie Temple: You're born, you take shit. You get out in the world, you take more shit. You climb a little higher, you take less shit. Till one day you're up in the rarefied atmosphere and you've forgotten what shit even looks like. Welcome to the layer cake son.
Explostion at "Radio France" in Paris
Police have set up a security perimeter around the Radio France headquarters in Paris as authorities respond to fire - @radiofrance
Building burns
latest
http://tersee.com/#!q=paris&t=text
When will the central banks start buying used cars, firewood, and pork bellies?
They alerady are doing it.
when does everyone simultaneously bid for gold?
Better question....when does everyone simultaneously demand possession?
from what I hear it's not until the dollar breaks.
The potential treasury dumpers have more to gain from slowly converting out of us debt into real assets than they do by a quick dollar crash since there's trillions invested. The divestment may take longer than we care to admit.
These central bwanksters have gone totally insane!
It is like watching water swishing around a toilet bowl on its way down the drain!
You guys are never wrong. Thank god for zero hedge
Japan now has government debt of over $100000 per person....and it still doesn't work.
Dave: "I want interest rates to stay at rock bottom forever!"
Okay...
http://www.telegraph.co.uk/finance/personalfinance/interest-rates/111998...
for all the good people that do not own anything it is sour grapes indeed that central banks are printing money like no tomorrow. wait till the common folk tell the ministers of finance around the globe to collect their taxes from the central bank as well. hey kuroda, hey draghi, hey yellen. simplifies matters a lot and inflation will break out overnight
the new generation of kamikazes
moar shit show
but you saved the economy barry you fucking piece of communist dog shit
Just when I think that surely this can't go on, it does anyway.