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Markets Explode Higher As Bank Of Japan Goes All-In-er; Increases QE To JPY 80 Trillion

Tyler Durden's picture




 

UPDATE: *NIKKEI 225 EXTENDS ADVANCE TO 5%

NKY is up 1000 points from FOMC

 

 

 

and what do u expect to happen to JGBs when Stocks rip 1000 points... yep they're rallying!

  • Yield on 10-yr govt bond declines 3.5 bps to 0.435%, while 20-yr yield also slides 3.5bps to 1.285%, both lowest since April 2013.
  • 5-yr yield falls 1 bp to 0.110%, level unseen since March 2013
  • Lead 10-yr bond futures climb to record 146.78

 

In a surprise move given all the recent congratulatory bullshit from Abe and Kuroda on breaking the back of Japan's deflation and bring about recovery (forgetting to mention record high misery index, surging bankruptcies and a crushed consumer), the Bank of Japan (by a 5-4 vote) raised its bond-buying program from JPY 70 trillion to 80 trillion... and triple its ETF buying to JPY 3 trillion. This move, on the heels of more confirmation of broader foreign asset purchases in Japan's GPIF sent USDJPY instantly gapping 1 big figure higher to 110.30 and Nikkei futures instantly rose 400 points. S&P futures are also surging. Gold and silver are tanking and TSY bonds are selling off.

  • *BOJ UNEXPECTEDLY TARGETS BIGGER EXPANSION OF MONETARY BASE
  • *BOJ TARGETS 80T YEN ANNUAL EXPANSION IN MONETARY BASE
  • *BOJ SEES RISKS IN CHANGING DEFLATIONARY MINDSET
  • *BOJ AIMS FOR ANNUAL INCREASE OF 80T YEN IN JGB HOLDINGS
  • *BOJ EXPANDS PURCHASES OF ETFS TO 3T YEN
  • *BOJ: ETFS TRACKING JPX-NIKKEI INDEX 400 ELIGIBLE FOR PURCHASE
  • *BOJ: WILL CHECK RISKS, ADJUST POLICY AS APPROPRIATE

BoJ Statement

This was a double whammy though as Japan also announced it was shifting GPIF asset allocations...

From this...

 

To this...

  • GPIF’s current portfolio targets are 60% for Japanese bonds, 12% each for local and overseas stocks, 11% for foreign bonds, 5% for short-term assets
  • GPIF will today boost allocation targets for Japanese and foreign stocks to 25% each, while reducing its domestic debt allocation to 35%

And the result...

  • *YEN DROPS TO 6-YR LOW AT 110.12 PER DOLLAR AFTER BOJ
  • *NIKKEI 225 SURGES MOST SINCE JUNE 2013 AFTER BOJ ADDS TO EASING

Nikkei 225 is up 700 points from this afternoon's 2-week old headline and broken markets!!

 

S&P futures are surging...

 

Gold was pushed lower...

 

Ironically Gold is up in JPY terms...

 

Treasuries are being sold heavily...

 

*  *  *

It seems money does grow on trees...

*  *  *

A gentle reminder - Blackstone's Larry Fink met Shinzo Abe two days ago... (the same Blackstone that warned of carnage if selling ever begins in corporate bond land)... clearly the Japanese panicked!

Welcome to your fundamental-driven markets!! The farce is almost complete. The day after The Fed stops QE, The BoJ raises its bond AND STOCK buying program!!!!

*  *  *

Coming soon...

 

Even though Kuroda said Japan could control hyperinflation through monetray policy...

 

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Fri, 10/31/2014 - 01:01 | 5397045 Sam Clemons
Sam Clemons's picture

Japan = Winning the battle of idiocy.

Fri, 10/31/2014 - 01:10 | 5397059 Deathrips
Deathrips's picture

The game is print and spend as fast as possible.

 

Everybody's doing it. Till they cant.

 

 

RIPS

 

 

Fri, 10/31/2014 - 01:12 | 5397067 philipat
philipat's picture

This all looks like the end game to me. And in an almost unbelievable development, PayPal have, without warning or explanation, closed the Account which was set up to receive donations in support of the "Yes" campaign for the Swiss Gold referendum

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/30_P...

Isn't this all smelling a little like desperation?

Fri, 10/31/2014 - 01:42 | 5397135 Squid-puppets a...
Squid-puppets a-go-go's picture

reddit shows its back up and running. In the end i think the suspension (still unexplained) will end up being a boon for the yes campaign

Fri, 10/31/2014 - 02:25 | 5397214 Supernova Born
Supernova Born's picture

POMO-arigato, Mr Doucheboto.

Fri, 10/31/2014 - 03:25 | 5397260 economists_do_i...
economists_do_it_with_models's picture

Thanks for the laugh, Supernova Born.  LMAO...  +1

Fri, 10/31/2014 - 06:31 | 5397411 negative rates
negative rates's picture

Cashed in a large portion of gold I see, can the MSM spin this somehow?

Fri, 10/31/2014 - 03:28 | 5397258 Squid-puppets a...
Squid-puppets a-go-go's picture

wow - phark me - gold has punctured its triple bottom - trading at $1171

where's the china 'floor'?

Fri, 10/31/2014 - 03:35 | 5397266 SilverRhino
SilverRhino's picture

And silver is pulling a 15 bid handle (15.99)

Fri, 10/31/2014 - 03:56 | 5397273 Squid-puppets a...
Squid-puppets a-go-go's picture

arent i the douchebag - i bought both Ag and Au yesterday at $17.35 and $1220

still, cold dead hands and all......

Fri, 10/31/2014 - 04:40 | 5397313 LostandFound
LostandFound's picture

i bought at $1207 yesterday, you will be thankful when people are putting there heads in the oven like in Weimar, have faith, you cant beat this market, but you can protect yourself and your family.

Fri, 10/31/2014 - 05:39 | 5397355 new game
new game's picture

ok, ok, so is this the back up the truck moment? i hear that annoying warning beep...

Fri, 10/31/2014 - 05:55 | 5397374 actionjacksonbrownie
actionjacksonbrownie's picture

Back up the truck? Yes - back it up and dump it, cuz we are off to $1000 an ounce land now, and everyone knows it. I speculated a while back that $1200 was a given, and that $1000 was likely. Now we know $1000 is a lock and only a fool would be buying here.

 

Sell all your gold now (if you still have any) and pick up 25% more for the same $$$ in a few months time - easy!

Fri, 10/31/2014 - 05:58 | 5397375 tocointhephrase
tocointhephrase's picture

The sound of jingle Bells?

Fri, 10/31/2014 - 06:03 | 5397381 new game
new game's picture

yes, that is 64 trillion yen question! 1180 held thrist, christ almight tell us if doing gods work(buying gold) is still the eleventh comandment. ah, no, do not hold false gods, jamie does our work...

Fri, 10/31/2014 - 06:33 | 5397416 negative rates
negative rates's picture

It's just a paper chase, no big deal.

Fri, 10/31/2014 - 02:57 | 5397242 Pseudonymous
Pseudonymous's picture

They could simply set up a Bitcoin wallet and receive donations that way. WikiLeaks did this already more than 3 years ago.

Fri, 10/31/2014 - 05:04 | 5397334 cnmcdee
cnmcdee's picture

Tom Clancy was killed by the CIA.

Why? The guy writes Patriot books?

However one of his latest books dealt with a bioterrorist attack that occurs inside the Continental US on Black Friday called Operation Dark Winter.  Coincidentally Ebola conditioning has been ongoing for months, and Black Friday is only four weeks away. ISIS can 100% be blaimed on any outbreak - in fact they probably will be the ones to do it.

https://www.youtube.com/watch?v=DSWHS6CKS_4

Medical Martial Law by Christmas with UN Chinese and Russian Troops anyone?

Fri, 10/31/2014 - 07:03 | 5397449 OW My Balls
OW My Balls's picture

Pardon me but wouldn't that interfere with the Auburn ~ Alabama game?

Fri, 10/31/2014 - 01:12 | 5397069 Squid-puppets a...
Squid-puppets a-go-go's picture

but that being the case... can anyone tell me why gold and silver are tanking?

Fri, 10/31/2014 - 01:20 | 5397076 philipat
philipat's picture

No. It makes no sense. QE = Inflation = Good for Gold. The opposite of ending QE3 = no more printing = less inflation risk = bad for Gold. It seems that both ways are bad for Gold.

But, of course, we are not dealing with fundamentals any longer.....

Fri, 10/31/2014 - 01:24 | 5397096 XqWretch
XqWretch's picture

Same thing is happening with bonds, the opposite of what should be happening...

Fri, 10/31/2014 - 03:21 | 5397257 Relentless101
Relentless101's picture

The play is to borrow a few million in yen and then pay it back for a nickle 10 years from now.

Fri, 10/31/2014 - 01:45 | 5397145 Squid-puppets a...
Squid-puppets a-go-go's picture

i akshully disagree

end of QE - stock market tanks safe havens needed - good for gold

QE restarts - inflationary, good for gold

Fri, 10/31/2014 - 04:46 | 5397319 philipat
philipat's picture

Yes, I completely agree but I was just trying to explain the way the "Markets" generally are "rationalised". In my example, the first point actually happened, the second didn't. In your example, it didn't happen either. So, again, we can conclude that fundamentals don't mean a thing, only the Fed matters. Pathetic isn't it?

Fri, 10/31/2014 - 05:34 | 5397337 new game
new game's picture

pathetic, fucked up, so in my daily life i can assume a red light means go and green is stop. yellow is flip the bird.

point is when rules of life violated chaos ensure, just a fucking mater of time til chaos is the norm.

already seeing it as a gradual creep of misdeeds by average cits in addition to misfits. wtf, do i care anymore either. think about your own attitude.

why t f should i give ashit if the fuckers are fucking us? the crux of societal degradation...

Fri, 10/31/2014 - 03:16 | 5397256 Capitalist
Capitalist's picture

Maybe, just maybe, the premise that QE = inflation is completely wrong.

The other premise of inflation = good for gold might also be wrong.

 

You can either consider the above or just put it down to manipulation by the cartel.

Fri, 10/31/2014 - 03:35 | 5397265 The Most Intere...
The Most Interesting Frog in the World's picture

No, inflation is good for gold.  The qe has only marginally made it to the real economy.  In hindsight qe overshot government deficit spending and the economies ability to soak it up, thus it ended up in the stock and bond markets and much of it remains in reserve.  

Fri, 10/31/2014 - 04:01 | 5397274 Squid-puppets a...
Squid-puppets a-go-go's picture

listen to the frog. The frog has it rite.

Fri, 10/31/2014 - 05:44 | 5397363 new game
new game's picture

qe went to the vortex, already allocated, never had a chanvce to get to you or i. like coke in the back room. don't even think for a moment you are entitled to free money. you are not special...

Fri, 10/31/2014 - 05:59 | 5397376 Squid-puppets a...
Squid-puppets a-go-go's picture

ive had coke in the back room in my past travails

wheres my fkin free shit?   If i joined the free shit army id commence as an officr

Fri, 10/31/2014 - 06:08 | 5397384 new game
new game's picture

been in that room-breaking rocks that flake to nice rails of pleasure. oh the good ole days of not giving a shit...

Fri, 10/31/2014 - 06:38 | 5397418 negative rates
negative rates's picture

It was called denial, you were asleep, now you are awake, and  denile is not just a river in Egypt.

Fri, 10/31/2014 - 03:28 | 5397262 The Most Intere...
The Most Interesting Frog in the World's picture

QE does not equal inflation.  Spending the QE equals inflation.

Fri, 10/31/2014 - 06:24 | 5397400 Ghordius
Ghordius's picture

first comes spending in excess of income (tax receipts). which creates debt (sovereign debt, for example USTs). then comes QE, aka monetization, which is the central bank buying up this debt... with inflation (aka newly "printed" dollars). then this inflation (moar dollars) might or might not cause price increases, depending from other factors, too

let's say a small country has one million seashells of currency in the economy being used as money

then you have a war, and this country issues debt for one million seashells in order to fight it

then... the national bank buys up half of this debt... with half a million new seashells

now you have 1.5 million seashells used as currency in the economy. chances are that prices increase. "monetarists" say by 50%... eventually

technically, the inflation happened at the point of buying up the debt, called monetization

for people on the street, "inflation happens" when prices go up as a consequence of all this

Fri, 10/31/2014 - 08:04 | 5397579 bbq on whitehou...
bbq on whitehouse lawn's picture

The question is why would you let another country sell you into slavery for seashells?

Fri, 10/31/2014 - 01:38 | 5397122 James_Cole
James_Cole's picture

but that being the case... can anyone tell me why gold and silver are tanking?

yoy demand declines, particularly in etfs (the drivers of the price gains). People on here are still in denial, but until the etfs buy back in this will continue, no matter how much smoke and mirrors from the sell side

Fri, 10/31/2014 - 01:48 | 5397155 Bay of Pigs
Bay of Pigs's picture

PM ETFs are a fraud and garbage. Stacking physical at lower prices as this thing implodes from within is a gift from heaven.

You really are a fuckan wanker Cole. You dont appear to know much of anything.

Fri, 10/31/2014 - 02:09 | 5397195 James_Cole
James_Cole's picture

You really are a fuckan wanker Cole. You dont appear to know much of anything.

Yeah you been practically clairvoyant on the subject of gold / silver lol

Fri, 10/31/2014 - 02:15 | 5397201 Squid-puppets a...
Squid-puppets a-go-go's picture

maybe not, but i am a clairvoyant and i can foresee in about 3 years time you James Cole will still be a fuckan wanker

Fri, 10/31/2014 - 04:56 | 5397326 cnmcdee
cnmcdee's picture

Gold futures markets are tanking because the naked shorting exceeds Phys by 100:1. Phys is still $1600 / ounce. Don't think so go to your local bank and ask for a 'gold certificate' and how much.  As soon as you get a quote ask how much for physical delivery..

 

They will act all weird because they have to justify the $400 / ounce premium some how. First they will try to discourage you, and tell you there BS certificate represents a real ounce of gold and is safer.  After you INSIST on Phys delivery it will suddenly have a $400/ounce 'delivery charge.' Well because it's hard to get, and they 'don't normally do this' and 'they have to used armored couriers from bank to bank to bank' will be there drivelling excuse. The whole time they will hope they can switch you back to Gold certificates which the print shop apprentice down the road is printing up by the 1000's...

There are two markets - the pretend pretty Electronic Gold markets and the Real Phys.  It's like comparing Margarine to Butter.  One is a engine lubricant, the other is real cow tit good sh*t.  Don't be fooled by imitations.

 

 

Fri, 10/31/2014 - 06:15 | 5397391 Squid-puppets a...
Squid-puppets a-go-go's picture

actually here in Australia theres virtually no premium on getting phyz. except for the currency at 88c to the $US

but then Aus is the worlds (3rd?) biggest supplier

Fri, 10/31/2014 - 06:18 | 5397394 new game
new game's picture

please explain why i can click on phyz gold coins american eagles for 1220 right fucking now. so 1220=1600! what a fucking wanker you are. fuck you...fuzzy math krugman style. i will buy a hundred ounces if you can guarantee me 1600/once right now wanker. fuck off...

Fri, 10/31/2014 - 06:43 | 5397424 negative rates
negative rates's picture

You are about to go off your meds I see, money won't mean much then, but that pain in the ass will return along with the pain in the neck that never went away. SUCKER. 

Fri, 10/31/2014 - 06:45 | 5397432 chindit13
chindit13's picture

Phyzz is $1600?  Do you also buy bridges?  Florida swampland?  Your house need some aluminum siding?  How about a nice Mac 512K?  I paid $1800 for it in 1985, but I'll ignore thirty years of Fed-induced inflation and sell it to you at my cost, orignal box and all.  I'm just that kind of guy.  For an extra $400 I'll toss in a massive 20MB hard drive.  Heck, you even get one of the original Option Pricing programs, which I wrote in Pascal and still sits on the HD.  That program made me some serious dosh.

Frankly, I'm willing to give you such a deal because you've saved me.  Out of curiosity I was checking prices on 100 oz Good Delivery bars, and I was quoted $1181/oz.  Yes, if it sounds too good to be true, it probably is.  Tungsten no doubt, right?

Perhaps you can help again, though.  I also got quotes on 5000 oz Ag ingots and they were barely over 16/oz.  Everybody here says the REAL phyzz price is 27 or something and its scarce.  I'm thinking maybe those one ounce coins are just really really purty, and I know those 5K oz ingots are butt ugly.  Lots of nicks and depressions that look like smallpox scars. 

Who is your financial advisor?  Sounds like he is serving you well.  Or serving you up.  Some people are made to be customers.

Fri, 10/31/2014 - 07:36 | 5397506 OW My Balls
OW My Balls's picture

You know?

 

Who TF really cares?      I'm not advocating a stance either way      For disclosure (vis a vis Ag), I bought some back in July 2010, and it has taken until just now to 'theoretically' go under water on those      Subsequently ~ I never sold any (because I was asleep and just happened to miss out running to the LCS in the exact few milliseconds when it ticked up to $50 then got crushed while all the goons in DC were sitting around in the situation room watching the supposed 'Bin Laden' raid on unplugged laptops)

So the only reason, to me, that they're under water from my perspective is because of the boating accident

Either way, I'd rather have just about ANYTHING physical in the world instead of bank notes (whether paper or digital)      I acknowledge the practicality of holding a few '$'s' in the process, but really, once you have what you believe to be enough of THE BASICS (in terms of food, & emergency supplies), WTF difference does it make if you trade a few crappy dollars for Au or Ag AT ANY PRICE?

So these discussions & admonishments on who got the better of whom in their 'horse trading' endeavors of these instruments is FOS (because the characteristic of that assessment is a MOVING SIDEWALK whereby the value is 'yet to be determined' & thus unquantifiable.

 

Fri, 10/31/2014 - 03:08 | 5397250 Ungaro
Ungaro's picture

Listen, Liebchen and hear me well. The ONLY asset classes you are permitted to invest in are those that can be easily misappropriated, nationalized, stolen. Gold and silver are tough cases because many of you have been known to hide them, you rascals! So just buy more stocks, I promise we will keep pumping them for a considerable period, for the forseeable future. Why mess with anything else? Bonds yield bupkes und commodities are tanking, including the metals. Got that?

Fri, 10/31/2014 - 04:39 | 5397312 qe.moneytree
qe.moneytree's picture

Yes Sir

Fri, 10/31/2014 - 08:11 | 5397595 bbq on whitehou...
bbq on whitehouse lawn's picture

Ever have your accounts frozen? Ever have that money stolen streight out of your account? Its an eye opening experience let me tell you. And no you dont have to do anything wrong or innaproprate to have it happen. YOU dont own whats in your accounts they are not your property.

Fri, 10/31/2014 - 04:02 | 5397275 RealityCheque
RealityCheque's picture

Becuase public perception. 

Fri, 10/31/2014 - 01:12 | 5397071 taraxias
taraxias's picture

BoJ going full retard. I only see this as desperation, we must be getting close to end. Not a day too soon.

Fri, 10/31/2014 - 01:33 | 5397115 Sam Clemons
Sam Clemons's picture

Seems like gold is the only antidote against this "system."

I long for the day when people run out of every paper asset into gold.  Maybe it will never happen, but a man can dream.

Fri, 10/31/2014 - 01:40 | 5397126 algol_dog
algol_dog's picture

Greenspan was telegraphing this development. If Gold doesn't start to move now it never will.

Fri, 10/31/2014 - 01:54 | 5397157 Bananamerican
Bananamerican's picture

a nice mainline shot from BOJ....how long till defibrillation sets in?

Fri, 10/31/2014 - 06:23 | 5397396 new game
new game's picture

the andorphines are energized in the main brain stem, ohhhhhhh yea- all good, blow job next...

Fri, 10/31/2014 - 04:47 | 5397323 cnmcdee
cnmcdee's picture

This erratic shotgun movements are completely disconnected from reality in every fashion.  Having the the market gyrate like this is like you took the oil out of your engine and it's free to blow a piston through the top block. - which it just did

 

This does not end well, and what goes up must come down. 

 

Fri, 10/31/2014 - 01:11 | 5397070 sodbuster
sodbuster's picture

The truly fucking stupid- do the same thing, over and over, and expect different results!!

Fri, 10/31/2014 - 06:01 | 5397378 SofaPapa
SofaPapa's picture

Ah, but they're not expecting different results...

The result is that the small elite at the top of the pyramid has sucked up all the property on the monopoly board.  This latest move just makes sure the "monetary pressure gradient" which creates that dynamic is maintained and that the process of concentrating resources and control into the hands of the center continues.  It might have slowed down, and they don't want that.  Absolute central control.  Learn to love it.  It's what's for dinner.

Fri, 10/31/2014 - 06:43 | 5397427 Sisyphus
Sisyphus's picture

We think they are insane and are expecting a different result. However, maybe they are getting the result they want--a rising stock market. Somebody here once mentioned that the stock market has become a policy tool now. And it seems it indeed has. So, a couple of days after the Fed stops the QE, the BOJ ramps it up. This is what is called a classical hand over. The Fed stops and the BOJ picks up the slack. So, now the BOJ is responsible for keeping the markets high and FED tells the world that the QE has been a grand success. Next, the BOJ will scale down and ECB will pick up the slack. Then ECB will scale down and .... Well, you get the picture. It is all about the rising stock market. Bet on it that metals are going to go lower, much lower. And oil is going to go much lower, too. That will accomplish two things--folks will complain less about the price of gas and Russia, Venezuela, Iran, et. al. will implode. Nothing will happen to KSA, as the US has its back.

Let's accept it--the Fed has won, it has been able to land this giant ship without a crash. They can print, make anything up, work in cahoots with another CB to keep this thing going for a long time. Dollar isn't losing its reserve status anytime soon, sheeples are not going to wake up, wars are going to continue, phones are going to be tapped, liberties are going to be lost, no hyperinflation, no gold $5000 and no silver $500, and one by one everybody will capitulate and give up. In a few years time, DOW will probably be at 30000 and some of us are still going to say "anytime now..."

Somewhere Fonz must be smiling. Good for him. He and Kito were right. We were all wrong. Let's accept it.

Fri, 10/31/2014 - 01:32 | 5397113 Bloppy
Bloppy's picture

How will the other insane central bankers one-up this?

Fri, 10/31/2014 - 02:05 | 5397187 takeaction
takeaction's picture

OMG...Look at the Pre Market Open...up up and away.....what the hell is going on?  Metals slammed, Stocks to the moon......Somebody expain this?  I thought the FED was out, so in theory "No More Propped Up Market".  I guess I am going to hold on tight...suck it up and do some more catching the knife with metals.  Just got my property tax bill...At least that is up...ooops.  LOL

Fri, 10/31/2014 - 04:06 | 5397279 Squid-puppets a...
Squid-puppets a-go-go's picture

wow man you just popped a pre-conscious thought bubble

the PPT are going on the ATTACK - not the defence. QE in Amerika has restarted WITHOUT the announcement!  - and orchestrated with the BOJ to mask the source

Fri, 10/31/2014 - 06:30 | 5397361 LULZBank
LULZBank's picture

You high IQ Americans are so fuckin gullible.

Just hope you didn't take Alan I see the Light Greenspan's advise from the other day!

Fri, 10/31/2014 - 04:45 | 5397318 cnmcdee
cnmcdee's picture

You know when the piston comes through your engine block just before you coast to a dead stop..?

 

Fri, 10/31/2014 - 06:26 | 5397402 Bangin7GramRocks
Bangin7GramRocks's picture

PARTY ON GARTH!

Fri, 10/31/2014 - 01:03 | 5397047 HedgeAccordingly
HedgeAccordingly's picture

It's on!!!>.. SUSHI!

 

http://www.hedge.bz

Fri, 10/31/2014 - 01:04 | 5397051 Kprime
Kprime's picture

three in a row, sweeeet.

level two!

But that's not how it's done

that's not how any of this is done.....

Fri, 10/31/2014 - 01:54 | 5397164 takeaction
takeaction's picture

I unfriend you.

Fri, 10/31/2014 - 01:04 | 5397055 q99x2
q99x2's picture

Let's give it to Abe and see if he likes it.

Kind of nice to be able to sit back and see what happens to the US in the future.

Fri, 10/31/2014 - 02:42 | 5397220 DJ Happy Ending
DJ Happy Ending's picture

Kind of nice to be able to sit back and see what happens to the US in the future.



+1000

 

Fri, 10/31/2014 - 05:41 | 5397356 LULZBank
LULZBank's picture

 

Kind of nice to be able to sit back and see what happens to the US in the future.

 

When this happens to US, there will not be a US and EU propping it up.

Fri, 10/31/2014 - 06:45 | 5397430 negative rates
negative rates's picture

I think you got spun, the US don't have any gold, just debt.

Fri, 10/31/2014 - 01:05 | 5397056 starman
starman's picture

Fuck me running! 

Fri, 10/31/2014 - 01:10 | 5397065 Sam Clemons
Sam Clemons's picture

I'm not sure what's worse.  The ideology behind this "working." Or that no one seems to care that MOST people have to work for money while the central banks just create it to play games with the economy.

Fri, 10/31/2014 - 06:46 | 5397433 negative rates
negative rates's picture

Life is not a game, unless games are your life.

Fri, 10/31/2014 - 01:14 | 5397066 franciscopendergrass
franciscopendergrass's picture

I was long CADJPY and USDJPY and they reached their targets.  Thanks Kuroda and Abe for making my night at the expense of all the poor souls in Japan.  The government there is dropping the A-Bomb on themselves.  Only people shielded from this financial A-bomb will be the bankers. 

Fri, 10/31/2014 - 01:11 | 5397068 ebworthen
ebworthen's picture

When do I get my $30 Million tax free?

I mean, Trillions in bond and Mortgage Backed Securities bought, why not?

C'mon Central Banks!  Take this to the next logical step and send out those checks to your citizens!

Fri, 10/31/2014 - 01:16 | 5397078 GernB
GernB's picture

Panic buying right now. At some point it will become obvious central banks are our of control and confidence in them will collapse. This sure seems like BOJ is out of control.

Fri, 10/31/2014 - 05:53 | 5397373 SofaPapa
SofaPapa's picture

Mmm... At some point it will become obvious central banks are our of control

It will become obvious to who?  When I saw the chart of adjusted monetary base out of St Louis in 2011, I saw central banks out of control.  If it's not already obvious that these guys are out of control, who is left to convince?  None of this makes any sense whatsoever.  Enjoy the ride.  The bottom looks to me like either 1984 world or post-collapse of Rome world.  Trying to predict a radical paradigm shift according to any sort of rationality appears for the past 6 years to have been a completely losing game.

Fri, 10/31/2014 - 07:33 | 5397516 turnoffthewater
turnoffthewater's picture

Yes the BOJ is out of control but in control at the same time. So there is a coordinated consensus against the average taxpayer. Everyone that has muchooo dinero has been using the yen for years to buy and sell since the neg interest rate, Is the the Yen f**ed, yes it is. So this game of arbitrage and game playing will contnue urtil it can't. In the mean tme, the over leveraged banks will paper will buy another paper when when it all comes tumbling down. 

Fri, 10/31/2014 - 01:23 | 5397093 IronShield
IronShield's picture

Thank you for speeding the demise of this system.  The question is, my brothers and sisters, are you ready for what's next?  Sadly, I know the answer for the vast majority, and it ain't going to be pretty.

Sayonara Bitchez!

Fri, 10/31/2014 - 01:26 | 5397105 XqWretch
XqWretch's picture

Meh... I think it will be quite simple what will happen. All the idiotic investors buying all these sovereign bonds are going to get slaughtered when the USA, Japan and the EU just come out switch to a new currency. Then no one in their right mind would ever lend to them and these govs will actually have to spend the money that comes from taxes. Just my two cents. Oh, the FSA armies might be pissed though, but fuck em

Fri, 10/31/2014 - 01:37 | 5397120 MsCreant
MsCreant's picture

USD is gonna go down with a lot more difficulty than that. I don't think it is better, I think the herd finds the idea of something else "inconceivable." If it were otherwise, it would have already happened. The USD is a huge piece of the US identity. It will devalue wildly on the world stage before "we" give it up. We are not "just going to switch." We like our story of ourselves too much.

 

With the lights out, it's less dangerous
Here we are now; entertain us
I feel stupid and contagious
Here we are now; entertain us
A mulatto, an albino, a mosquito, my libido
A denial, a denial, a denial, a denial, a denial
A denial, a denial, a denial, a denial

COBAIN, KURT/NOVOSELIC, KRIST/GROHL, DAVE

Fri, 10/31/2014 - 01:50 | 5397160 GernB
GernB's picture

I'm not sure how devaluing wildly will increase confidence in the US or USD, the only thing that will stave of abandoning it as a reserve currency, I'm not sure Russia, or China (or India or Japan) give a flying leap how much we don't want to "give it up."

Fri, 10/31/2014 - 02:36 | 5397225 XqWretch
XqWretch's picture

I think they will give up the USD because there are so fucking many of them floating around, the value would free fall once people realize it's worthless. So make a new currency, preferably backed by something, and leave all the fuck tard bondholders in the dust. I guess I am dreaming

Fri, 10/31/2014 - 01:54 | 5397165 Squid-puppets a...
Squid-puppets a-go-go's picture

i agree totally. With cobain, not ur preceeding comment.

nar jez fuckin widja i do agree.   I think itll take all these new and proposed $US bypassing mechanisms to be up and running at full tilt before the $US weakens - so, like, 2-3 years for the weakening to start, another 2 years slow melt, then precipitous drop

around 2019 is american weimar

Fri, 10/31/2014 - 02:10 | 5397193 seek
seek's picture

What you describe is exactly what happened in the great depression. Remember we went off the gold standard so they USD could be revalued against gold internationally.

It'll be interesting to see how they repeat the same trick this time. Perhaps implode the banking system and then do the new for old USD exchange at different rates depending on the account holder's citizenship?

Fri, 10/31/2014 - 02:29 | 5397219 XqWretch
XqWretch's picture

None of these jerk off countries can pay a dime of interest on any of these bonds maturing, what makes you think they wont just not pay? Seems to make more sense to me. Then maybe the dollar will start to become worthless, you're right. I guess either way the dollar will devalue/has devalued

Fri, 10/31/2014 - 01:25 | 5397099 Spungo
Spungo's picture

Gold and silver are getting smashed. Either that or Japanese people are sprinting for the door and buying US dollar denominated assets as quickly as possible. I know I would. Detroit real estate? Sure, whatever, just take my yen and give me something! Or buy oil stocks. They're pretty cheap right now. My completely fake technical analysis predicts Exxon going down to $85 before the end of November (it's currently dead cat bounced up to $95).

Fri, 10/31/2014 - 02:03 | 5397182 tenpanhandle
tenpanhandle's picture

+1 for your completely fake technical analysis

Fri, 10/31/2014 - 04:10 | 5397284 Tigg47
Tigg47's picture

Technical analysis has no -I repeat NO- predicting value.

Fri, 10/31/2014 - 05:43 | 5397360 SofaPapa
SofaPapa's picture

In the current environment, where the "market" has become a set of numbers to be set - using freshly printed currency units - by central committee just as in the days of the USSR and just like in Venezuela, Argentina, etc. - for the purposes of maintaining public calm, you are absolutely correct.

Fri, 10/31/2014 - 01:24 | 5397101 Make_Mine_A_Double
Make_Mine_A_Double's picture

Madness.

Bottom of the 9th for BOJ and they swinging for the fence.

Fri, 10/31/2014 - 01:26 | 5397104 lordbyroniv
lordbyroniv's picture

I am buying assets per Herr Yellen.

 

So I guess I will be ok.

 

Feel bad 4 u poor slobs not heeding the advice.

Fri, 10/31/2014 - 01:30 | 5397111 Spitzer
Spitzer's picture

It appears that the BOJ sold treasuries to pad this QE. Look at the chart.

Fri, 10/31/2014 - 01:41 | 5397131 MsCreant
MsCreant's picture

Air for air.

Nothing from nothing leaves nothing.

Shell games where there is nothing under any shell (the pea has been eaten already, but we switch em too keep you looking at the game, rather than the fact the pea is gone).

Central bankers are paper pushers.

Fri, 10/31/2014 - 02:04 | 5397176 Bay of Pigs
Bay of Pigs's picture

After all these years, it appears we are reaching critical mass Missy.

Hang on tight my friend...

Fri, 10/31/2014 - 01:29 | 5397109 MsCreant
MsCreant's picture

Who knew about this? Go look at what they are holding.

Is it possible that the whole economy has become an ongoing gang rape? Same general set of guys, the fucking is always going on, rotate guys in, rotate guys out, so as to not call too much attention to the rape, but there are a series of folks that keep taking turns pulling a train against their will?

This is what I mean when I say: "You Fuckers."

Fri, 10/31/2014 - 01:39 | 5397124 AbbeBrel
AbbeBrel's picture

Wow the ponzi goes exponential. An effing amazing thing to behold!

Fri, 10/31/2014 - 02:36 | 5397226 hobopants
hobopants's picture

This is some scary shit.

Fri, 10/31/2014 - 01:45 | 5397134 teslaberry
teslaberry's picture

this 13 trillion yen  is about another 100 billion usd. per year over the 600 billion pace they are already pursuing. 

 

jjjeeeeez. that's a lot of money to just flush into a whole bunch of banks....

 

if the government of japan just started spending the money in a fiscal manner, wouldn't that lead to hyperinflation?

 

 

if money is being printed and gold is going down, it means the cost of supressing gold is getting lower as well. 

 

gold is now functioning solely as an insurance policy against a total implosion of the system and war. by the time something like hyperinflation could even happen, it would happen so quickly you would not even be able to buy gold until after the entire collapse episode happened. the insurance policy only works if you bought and held the real physical policy BEFORE the unpredictable shutdown of the economy and the window stores where you can buy stuff. 

 

you will know that time is approaching when rice is unaffordeable to a lot of families. 

Fri, 10/31/2014 - 01:41 | 5397136 combatsnoopy
combatsnoopy's picture

Their excuse is that "the US markets are improving!"

They don't stop. 

Fri, 10/31/2014 - 01:44 | 5397144 economists_do_i...
economists_do_it_with_models's picture

I have observed situations like this in Vegas.  Double down, double down, double down.....until they are literally on the street asking people if they can spare some change.

Can't even begin to imagine the fallout when the day of reckoning comes and they are foreced to admit QE doesn't work.

Fri, 10/31/2014 - 01:47 | 5397148 MsCreant
MsCreant's picture

Radioactive.

Melt down.

Can destruction be a hedonistic orgy the walking dead revel in?

 

Fri, 10/31/2014 - 07:52 | 5397560 agstacks
agstacks's picture

Again with the orgy, huh? ;)

Fri, 10/31/2014 - 01:46 | 5397151 RisingSun
RisingSun's picture

LOL at the shorts here, all I have to say. Slowly buying gold with some of my gains, only 3% of my portfolio still, but hey(!) its free gold, slowly increasing 0.2% per month my gold holdings.

Fri, 10/31/2014 - 01:47 | 5397152 donpaulo
donpaulo's picture

its mana from heaven ! YAY !

Happy Halloween

Fri, 10/31/2014 - 01:47 | 5397153 chirobliss
chirobliss's picture

And just like that we go from the worst month in years to record highs across the board.

Well that was so effing easy dontcha think!!

Fri, 10/31/2014 - 02:05 | 5397185 taraxias
taraxias's picture

It's always easy when you can create fiat money with a few keystrokes and literally own the entire market.

What's even more disgusting in my opinion than the fraudulent Ponzi scheme actions of central banks is the collective silence of commodities producers who allow this to happen.

Fri, 10/31/2014 - 01:48 | 5397158 dressguard
dressguard's picture

Will this fucking madness ever end????

Fri, 10/31/2014 - 01:56 | 5397173 chirobliss
chirobliss's picture

Not until every weeping short is squeezed into penury and every frightened long goes scaling up into an overleveraged nightmare.

Fri, 10/31/2014 - 01:52 | 5397162 chirobliss
chirobliss's picture

I'm guessing that it is the ETF purchase plan that is squeezing the US futures sky high. This is what we'd have seen yesterday if the Fed had reversed their decision.

Fri, 10/31/2014 - 01:56 | 5397167 chirobliss
chirobliss's picture

miss

Fri, 10/31/2014 - 01:57 | 5397171 matt1021_98
matt1021_98's picture

I suck for listening to ZH. It was a simple BTFD. Just shows how stupid macro analysts are

Fri, 10/31/2014 - 02:11 | 5397194 tenpanhandle
tenpanhandle's picture

I totally agree - you suck.  Don'tcha know, they are just waiting for you to BTFD and then they'll crash it. (+1 to ya)

Fri, 10/31/2014 - 02:35 | 5397224 Otrader
Otrader's picture

Hindsight is always 20/20. 

Fri, 10/31/2014 - 02:11 | 5397196 nicoacademia
nicoacademia's picture

is this real life?

Fri, 10/31/2014 - 02:11 | 5397198 scatterbrains
scatterbrains's picture

who in the fuck has the cheapest silver right now ? I was hoping to get to bed by 2 am but the mid 15's might be here and gone by sun up.

Fri, 10/31/2014 - 02:22 | 5397211 scatterbrains
scatterbrains's picture

been there done that and got the holiday popcorn.. but their not the cheapest as I recall.

Fri, 10/31/2014 - 02:27 | 5397217 scatterbrains
scatterbrains's picture

fuck me.. I think I'll dial in some chaterbate porn before I end up pulling the trigger  too soon...can barely control myself waiting for the mid 15's

Fri, 10/31/2014 - 02:16 | 5397202 devo
devo's picture

I don't see how this is good for US stocks but somebody does.

Fri, 10/31/2014 - 02:17 | 5397204 chirobliss
chirobliss's picture

All over the world, shorts are screaming, "Aagh, make it stop, please please god, make it stop!!"

 

Up 20, up 40 up 70 on the NQ's

Fri, 10/31/2014 - 02:37 | 5397227 Otrader
Otrader's picture

NQ +20 by 11am PT.

Fri, 10/31/2014 - 02:19 | 5397205 GernB
GernB's picture

S&P Futures up over 25 points... you have to wonder who the heck is buying at these levels?

Fri, 10/31/2014 - 02:23 | 5397213 devo
devo's picture

And into a "strong" dollar. It has to be Yellen buying?

Fri, 10/31/2014 - 02:20 | 5397207 Central Wanker
Central Wanker's picture

Please do not worry.

Fri, 10/31/2014 - 02:25 | 5397216 chirobliss
chirobliss's picture

That's okay, I'll go long tomorrow at the open... That usually marks a decisive top!

Fri, 10/31/2014 - 02:36 | 5397228 gianakt
gianakt's picture

The double top is in on the S&P, just unloaded all my positions and went short. This is an act of desperation on the part of the Japanese, Abe enomics is not working.

Fri, 10/31/2014 - 02:47 | 5397236 user2011
user2011's picture

Japan has just declare currency war to other asian countries. I am expecting all the asian countries will devalue their currency one way or the other.

China, Korea and Thailand has done that before. and they will do it again.

Fri, 10/31/2014 - 03:16 | 5397254 Kina
Kina's picture

Im set to buy some gold tomorrow. AUD too strong, Gold way too low..... seems a good time to buy with AUD.

 

Anybody have a target for the AUD....

Fri, 10/31/2014 - 03:24 | 5397259 Uber Vandal
Uber Vandal's picture

I am disappointed that there isn't a bonus chart of the Zimbabwe stock market.

 

Fri, 10/31/2014 - 03:38 | 5397261 Kina
Kina's picture

Not sure about inflation and gold....gold is insurance against govts destroying economies and currencies. Cant disupte that massive M2 build up and USD govt debt, EU unsolvable problems, and China 'hard' landing possibilities.....makes a man wonder where the fuck can I put my money.

Some Has to be in bullion.

QE is building a great big dam.....whats missing is velocity of money....that is a dam you don't want to burst...

 

Velocity falling falling, lowest since before 1959 .... still there is inflation in essential goods now. However .... if that velocity stop falling and just rise...even a little bit.....one wonders the consequences....

http://research.stlouisfed.org/fred2/series/M2V/

 

I can only guess that if that velocity made its way back to the average on that chart of over 1.7  chaos would reign in US and global financial markers and economies...no?

 

Fri, 10/31/2014 - 03:34 | 5397264 Kina
Kina's picture

Option expiration isn't it?

Clearly this isn't anybody selling ...physical gold. Just somebody for whatever reason....dumping paper gold on thin markets to achieve lowest price.

As always the game is to get the price as low as they can. It is quite plain, well the CFTC not interested in this particular corruption.

Strangely LIBOR gets investigated...but silver and gold such a big big problem....nobody willing to touch for fear of cars and high building.

Fri, 10/31/2014 - 03:39 | 5397268 JPMorgan
JPMorgan's picture

Wonder what the half-life of this one will be?

It's just ridiculous there is no fixing stupid.

Fri, 10/31/2014 - 04:21 | 5397293 Chief Falling Knife
Chief Falling Knife's picture

I'm wondering about the half-life also.

From what I gather this 'surprise' increase in Japanese QE is good for roughly an extra $150 billion USD worth over the course of the next year.  Or roughly $10-$15 billion USD extra per month of BOJ buying JGBs.

A quick look at the Wilshire 5000 shows a total market cap of just shy of $20 trillion USD.  If these futures numbers hold until the open, the Wilshire will open up roughly 1%, or the equivalent of a market cap increase of about $200 billion USD.

And all because the market hadn't priced in this 'surprise' BOJ QE increase of $150 billion USD over the entire next year?

Color me skeptical this US market bounce will last much longer, then again, I called a top around 1680 over a year ago. 

Fri, 10/31/2014 - 03:41 | 5397270 Kina
Kina's picture

At below $1200 you would expect China, Indians, SEA etc...would be buying strongly into these dumps. In fact they are so regular these guys sitting there waiting to buy up at these times...

Fri, 10/31/2014 - 04:12 | 5397285 MATA HAIRY
MATA HAIRY's picture

as long as the yen and the euro continue to drop, the dollar will rise, and since gold and oil are priced in dollars, gold and oil will continue to drop...

Fri, 10/31/2014 - 05:20 | 5397345 JPMorgan
JPMorgan's picture

I agree.

Goldman's $1050 call is looking more likely, and if that happens the east will gladly hover up what is left in the western vaults.

The only thing that may stop the price breaking down to that level is IF the Swiss vote yes on Nov 30th.

Fri, 10/31/2014 - 04:03 | 5397278 RealityCheque
RealityCheque's picture

What's Abe doing?? Doesn't he know what the inflation will do to the price of his Imodium???

Fri, 10/31/2014 - 04:08 | 5397282 Kina
Kina's picture

i like the analogy of having an insurance policy on a car you know the driver is a total lunatic.

 

That is pretty much bullion. You know these guys are playing all sorts of dangerous games, desperate, driving like drunk teenagers, and still pushing the peddle down, slaming the breaks around conrners...and the accelerator is stuck and breaks burned broken, road getting rockier and steeper, more hairpin turns........so you know that a catastrophic accident is inevitable.....and payout coming. Just a matter of when......

Fri, 10/31/2014 - 04:15 | 5397287 Seize Mars
Seize Mars's picture

Holy shit. This is like watching the "hey man nice shot" guy blowing his brains out. Horrifying but I can't turn away.
Yikes this is all going to end soooooo fucking badly.

Fri, 10/31/2014 - 04:17 | 5397289 MATA HAIRY
MATA HAIRY's picture

it is like a rubber band that can stretch only so far...and when it snaps, that is when the brown stuff is gonna hit the fan...here in denver my rent just went up another 5 percent...lucky for me i have a good government job...but a lot of people here are hurting...

 

I am in and will remain in ...CASH

Fri, 10/31/2014 - 04:50 | 5397324 maneco
maneco's picture

Hopefully your cash is not in a bank.

Fri, 10/31/2014 - 07:06 | 5397451 Tinky
Tinky's picture

and hopefully you're not working for the U.S. government.

Fri, 10/31/2014 - 04:31 | 5397306 Kina
Kina's picture

I am also mostly in cash...AUD...and that scares me too. Spread between three banks.

Fri, 10/31/2014 - 06:12 | 5397386 huggy_in_london
huggy_in_london's picture

AUD ... Dangerous here... yield differential is not enough to justify holding it.  Its just too highly levered to china failing.

Fri, 10/31/2014 - 05:19 | 5397342 jubber
jubber's picture

Seems to me that the BOJ must ensure that all the Billions  of Sovereign European garbage Bonds they have bought so far don't crash....Good luck with that

Fri, 10/31/2014 - 05:24 | 5397347 buzzsaw99
buzzsaw99's picture

nice of them to announce changes in GPIF allocation BEFORE they make the move so everyone and their dog can front run them. nice of them to buy more foreign bonds AFTER they debauch the yen. they don't care anymore. not. one. bit.

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