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Japanese Stocks Up 1600 Points, USDJPY Up 5 Handles Since QE Ended; Kuroda Opposition Grows
Nikkei 225 futures are up over 1600 points since QE ended and topped 17,000 in a quiet Asian holiday session. USDJPY topped 113, up a stunning 5 big figures since QE ended. But it's not all hyperinflationary ponies and rainbows as The Wall Street Journal stuns its readership by admitting "although economic theory says a falling yen should make Japanese goods more competitive overseas and boost exports, that didn’t happen." Of course, that merely means moar is needed and therein lies the problem as opposition (internal and external) to Kuroda's policies are growing.
"Opposition within the BOJ looks likely to continue,” said a former board member who has close ties to some current members. Another person familiar with the board’s views said the gap between Mr. Kuroda and other members was growing and represented the “biggest problem” for the central-bank chief.
What a joke!! 1600 points and 5 big figures... NKY tops 17,000 and USDJPY tops 113
But as The Wall Street Journal notes, the vote for moar QQE was close (5-4) with, rather worringly obvious for the ivory tower academics, of the four dissenters, two are former private-sector economists and the other two are former business executives.
According to minutes of a BOJ board meeting in September, one member said “additional measures to stimulate demand carry the risk of growing financial imbalances or weakening the public’s recognition of the need for structural reform.”
Critics have said the BOJ’s dominant role buying government debt has distorted financial markets, pointing to negative interest rates on some short-term debt.
What came as a surprise were the no votes cast by the two members from the business community. Both Yoshihisa Morimoto, a former power-company executive, and former Sumitomo Bank executive Koji Ishida have generally voted with the majority, and BOJ officials have said Mr. Kuroda respects their hands-on experience. The two didn’t explain their votes, but Japan’s leading business lobby, Keidanren, has warned recently against an overly weak yen. Business leaders have said a weak currency may discourage consumption because people have to pay more for imported goods.
And finally, Kuroda and Abe face pressure politically...
On Saturday, the head of the opposition Democratic Party of Japan said the BOJ’s latest action would hurt average Japanese. “It should not do things that hurt the value of the yen,” Banri Kaieda told a gathering.
And it's only going to get tougher for him...
The road ahead for Mr. Kuroda could get rockier because one of his backers on the board, academic Ryuzo Miyao, finishes his term in March.
Which perhaps explains the massive size of this bazooka (and suggests its over for moar stimulus hopers)... Which is exactly what China did tonight:
- CHINA STIMULUS HAS CREATED RISKS, HIGH LEVERAGE RATIO: DAILY
- HIGH DEBT RATIO, HIGH LEVERAGE ENDANGERS CHINA’S GROWTH: DAILY
Which was swiftly followed by the PBOC's biggest weakening of the CNY fix since March 20th to its weakest in over a month(as the CNY trend chase drove the Yuan to its strongest against the fix since early Feb.
Get back to work Mr Draghi. (but EURUSD's eery plunge has already been met BTFD'ers)
* * *
Normal markets... nothing to see here
Charts: Bloomberg
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Instant inflation bitchez.
Tenno Heika Banzai
As per very smart ZH member "seek" in a recent comment, I definitely need to have a word or two with our Japanese bearing supplier...
Smile,,,
Japan truly has finally pulled the trigger & set off currency devaluation wars of the export-intensive (relative to % of GDP exports contribute to) nation-states.
Look for Japan, China, South Korea, Thailand, Taiwan, Australia, Canada, etc., as well as...ultimately...Germany (meaning dragging the euro with it) to push to debase their currencies to keep their balance of trade positive and their export dependent economies growing IN AT LEAST NOMINAL TERMS.
The alternative for export-dependent economies in the face of rival export-dependent nation-state currency devaluation is to see their economies and GDP shrink in first real, then even nominal, terms, leading to a recession then a depression.
Massive currency volatility lay ahead.
It's all cool as long as they pay their fairy share to the Queen (in ES points).
Long live the Queen!
It's like picking up a dime in front of a bulldozer........
that the supply side; where the fuck is the demand for all this shit coming from? yea, sure you can make your currency competitive, but really, who the fuck is DEMANDING this shit when credit is extended to max overload. and furthurmore, investment in future expansion is at all time low due to malinvestment from zirps. so who is healthy. seems to me russia with 8 percent return tops the list. wake up mother fuckers. ROI.>follow the return on investment(real investment=shit manufactured from raw materials)! dead zone created via(financial instruments) krugman/spend til econ dies. and this shit about money policy expansion the first sign of contraction is all pure bullshit. a normal economy contracts as a mechanism to adjust for malinvestment by fools. enuf of my rant. demand death to counterfiters and thieves...
Well nothing Japanese that I've bought has dropped in price.
So the economics is broken.
Nothing works
You can only get inflation if you DON'T want it !
Boy this boomeranged in weird ways, or "watch out for the ricochet!"
So the boost of QE to the Nikkei drove the yen higher, not lower...
How did THAT fuck with the forex orgy, I wonder? I'm waiting for the story on ZH, but with everything else backfiring, I think the ol Treasuries didn't get the boost that was expected. Here come the Shorts. Interest rates- TO THE FUCKING MOON!
And because Japan is probably, being all old and retired and shit, a net consumer nation instead of a net producer nation, the consumer gets hammered by the paradoxical rise in yen value and- wait for it- QUITS BUYING CHINESE CRAP!!!!
So now it's the Chinese who end up screwed by Kuroda's crusade- those communist fuckers are hanging on the edge as it is, why did Kuroda step on their fingers?
Oh, he didn't mean to, but here's what I think... at this late juncture in the game, every move is a destabilizing one.
Mark it folks- Oct 31, the day the wheels came off the shitshow.
QE didn't drive Yen higher. When USDJPY goes up, Yen is weaker, when USDJPY goes down, Yen is stronger, not the other way around.
.
.....Or the short of a lifetime.
Insanity has taken over
Agreed, we're going to be seeing some crazy volatility as there are moves and counter-moves as countries try to save their export business.
Can you imagine how this hits someone like a Boeing selling aircraft in Japan? You can either pass on a monster price increase or eat your margin. Ripple effects like this will be happening all over the planet, and that's just from this move -- onces the other ones hit it'll be a fun time for sure.
+1 to your comment and Truth's comment above.
They are keeping their people employed (and fed) as long as possible.
Japan & China, in particular, can not stave off extreme economic contraction, barring significant devaluation of their respective currencies, in order to boost affordability of their exports, since neither country can reasonably count on increased domestic consumption (for different reasons) to bolster their growth in any meaningful way.
Even if global trade contracts (e.g. EU consumes fewer Chinese or Japanese produced goods overall) the overall relative importance of supporting exports does not change for Japan or China (i.e. they would sell even fewer exports than at any given moment with stronger vs weaker currencies).
This is a looming crisis that's been years in the making, is due to the massive liberalization of global trade, the ineptness of central bank monetary policy, wildly varying demographic composition of respective nations, automation, and many other factors.
Anyone else feel like this is the blow-off top before the whole thing goes kablooey?
Also: unhinged California- man beaten by one of those peaceful progressives for wearing a Fox News costume on Halloween
http://tinyurl.com/n7a7v39
I bought back my GBP Dec. Shorts tonight; for +10,537$. I'll plan on re-shorting the Pound again in a back month. Still short the S&P500 and out of the money quite a lot. Waiting for further developments this week.
The stupid thing I did this year was to look at the Euro at 1.40; and not short it. It's been the trade of the year. and it was obvious.
Manipulated financial bullshit at the hands of Central banks and politicians.
Exactly. They have all kinds of dry powder laying around, so they can say they ended QE, and pump the shit out of the markets anyway to give the illusion everything is great, even though there is no QE. Until someone gets to audit the Fed, who isn't part of they system, we have no idea how much money they have printed.
There will be a crash in U.S. equities any minute/day/month/year now. And gold will explode to the upside. Tomorrow. Or the next day. Will the Tylers admit they were wrong yet? Or is this just about calling it every minute/day/month year until you're right, at which point you say "I told you so." I guess Peter Schiff made a bunch of money based on being right once, after which his clients lost everything waiting until the next time. And I'm sure we'll see his smug mug whenever it turns again, telling us he was right all along while his clients beg for food.
I understand your point, but the problem is that we are standing in the vicinity of a bomb, its fuse being lit.
And there is no way in the world for any of us to guess how long that fuse precisely is.
I actually agree with the basic premise that it's a bomb waiting to blow. But it's been going on 5 years since the Tylers predicted the fuse would burn out. I get that timing is tough, but that's a helluva margin of error.
What would be the alternative? Join the cheerleader crowd?
In general terms, I am batchelor prepared. (I'm happily married but live alone...it's a long story). By that I mean that I have the normal batchelor food storage:
1 bottle of ketchuop from 2010- check
3 tortillias dried to the consistency of china plates- check
half of an onion...well I suppose half of it is edible. It is- or was- a whole onion, but the bottom half is green and stuck to the bottom of the refrigerator- check.
15 pounds of coffee- check
So, yeah, I probably won't make it very long until I get hungry, if the system collapses. But I KNOW IT'S GOING TO COLLAPSE. When my neighbors wander, dazed and disoriented because everything they unconsciously trusted has been ripped away,
I WILL SNEAK INTO THEIR HOUSE AND STEAL THEIR FOOD.
How can I be so calm in the face of certain destruction? Because Zerohedge never gave up on the DOOM!
It's a helluva margin of error if you're in the investing business, which I'm not. If indeed you've been acquiring physical gold on any given gold trader's say-so in hopes of making a decent ROI within a reasonable span of time, then yes, you'd have been very ill-advised these past few years. And maybe the likes of Schiff, for the sake of their commercial customers, should point out there's a huge and growing difference between short term opportunities and long term trends.
Me, I just regard PM's as an additional insurance, next to a paid off house and some chickens in the backyard. All for the sake of my family. That's it. But since I like to stay focused and committed to that cause, I keep reading up on the articles here, although I see the flaws and recognize the clickbait. In any case, it beats trying to learn someting useful from the MSM.
"And maybe the likes of Schiff, for the sake of their commercial customers, should point out there's a huge and growing difference between short term opportunities and long term trends."
Schiff made money while losing client money. He charges a percentage. Why does he get a pass from the ZH ire for bankers and investment advisors?
Because 99% of ZH posters comment without knowing what they are talking about.
Because his macro view has largely been correct. He does deserve much more credit than the scumbags who have supported (and gotten rich off of) the status quo.
because Schiff aligned himself with Ron Paul, the man crush before Putin showed up shirtless.
ohhhh, those 2012 threads, such dreams & longings. . .
to be fair to tyler, ZH hasnt been saying the crash will happen any day now any day now
they have just been steadfast in pointing out, tersely and caustically, that when the crash happens it will be magnified by the follies of QE.
I agree. Rand is acting like a troll. I for one am glad they have been pointing out what a farce markets are and all the corruption that goes along with them, and the divergence from sound financial principals that get worse and worse. Stfu with your trolling bitch
I for one am glad they have been pointing out what a farce markets are and all the corruption that goes along with them, and the divergence from sound financial principals that get worse and worse.
--> I fully agree.
Rand is acting like a troll.
--> I fully disagree. LTER seems to be a guy who thinks for himself and challenges others with his views. I like that in a debate.
so simple>either you copy the fraudsters(wall st.), but beware as you are NOT an insider or you stay on the sidelines and watch zirp/inflation errode your wealth(only hedge is durable stuffs/smart real estate/collectables/tools-pm's such as metal, brass, copper, lead for the long haul/ and smart prepping stuffs). fuck brokers that sell their advise and paper instruments. ignore these motherfuckers and think for yourself... that is what lter is saying(i think with some deviations)...shiff is a talking head for the way is should be and will not be til mayhem! then all bets are off and i predict gold will be a fools asset when average person(99.9%) is searching for hickory nuts to grind, while a friend is covering his back side...(that is where the label hicks came from, during the depression)
It's crashing on Feb 3,2015, starting at 9:53 AM EST,
We have to get past the Santa Claus rally and the January effect, then it's all down hill next year!
hm, Germans talk w Burgermeisters over Christmas, and by Festival Season they are totally informed & up to date with the Budes Government.
Good Call. I actually called April 2015, end of 1st QTR, reports come out, US Funding issues are settled, markets are looking at GDP, .... all weakness is public in April.
only thing i can predict with certainty is when i'll piss and shit...
Tylers not a trader or a market timer; this is jounalism; he has a following and he publishs things. I bought BofA at $5,00 during the crash and told him he didn't know what he was talking about and got myself kicked off of here; so I won't be doing that again. but you have to be a bit goofy to imagine that he knows anything abouit markets.
Here's a newsflash for you; this is a bearish blog. if you don't like it go hang out at a bullish blog. or start your own; let's see how good your predictions are.
ZH and Schiff are right about this trains destination (over the cliff), but they have no fucking clue how much track is left.
Nobody does, but I'd rather get off and feel/look foolish now, than wait until after the fuckers airborn.
Shit sure is frustrating though.
theres some kinda stupid investment advice meme that some salient investment gurus know the timing. its a patently ridiculous notion when the biggest factors come down to arbitrary decisions made (or fail to be made) by commitees of bankers, politicians, trustees - all acting on the fly, and intersecting with a market with ten thousand algorythms and derivative triggers all evolving peicemeal
any investor that is even seeking /hoping for a prescient market timer to guide them is simply captive to his own inconfidence and inability to accept that there is no possibility of certainty. Ever.
I don't believe anyone knew 5+ years ago how much Central Banks would intervene re. monetary policy. If Central Banks are making this up as they go (and it sure looks like they are), nobody could have known 5+ years ago how much intervention would occur. The fact that various stock markets have risen sharply is not an indication that Central Banks have solved the major outstanding global economic issues. The game isn't over yet.
I tend to think today we see a confidence game. They didn't know how much they could get away with... they just keep taking a mile.
- This is a big point, if they can let TBTF manage TARP, keep interest rates low, keep buying toxic assets at the Fed, ZIRP, QE, Operation Twist... no DOJ prosecutions... no End to Shadow Banking, no end to creating new financial instruments, no standardized accounting, no integrity in Ratings... we push for another mile
- confidence game
- but the English plan for USA in 1776 was planned for a hundred years
- Lots of stuff is planned 50 years out
what's your interest in someone admitting they were wrong. I'm wrong all the time; but it doesn't bother me. that's what stop losses are for. You can't trade any major market based on a internet blog; unless you're hopelessly naive.
I bet there are some leveraged FX traders with some puckered sphincters about now.
pods
That was an orgy with some serious STD backlash!
Blaaah.
What happens in Japan is just confined to Japan.
Yen is not world currency
Keep thinking that. When the US Federal Reserve blows up the dollar will be much more spectacular.
If I am not mistaken, derivatives may not be.
And, this working paper aboiut the Yen is an interesting read from one year ago.
https://www.imf.org/external/pubs/ft/wp/2013/wp13228.pdf
That paper was a tough slog through the jargon swamps, but good info. For those who don't want to put on their literary hip-waders, here's the one sentence takeaway quote:
"Moreover, in economies with already low inflation and interest rates close to the zero bound, real appreciations driven by risk-off episodes could feed deflation risks and place downward pressures on aggregate demand."
To ekm 1:
Did you fall asleep in 1947, and just wake up?
The yen my friend is the dollar with different pictures on it.
There is no "Japan" or "US". There is just the major corporations, the banks, and the illusion to keep the people distracted.
Maybe the Albanian lek is not really a major problem if the Albanian CB QE's and forex backfires on a perverse spike in the lek's value.
But the yen carry is the biggest carry, or the second biggest. This is real shit.
:-)
ohhh,
if only folks truly understood those words, and then acted accordingly.
post "WW2" the entity named "Japan" was intentionally pre-occupied and used as yet another nationstate "derivative" to play with/against.
different "laws/rules/cultures" assigned to different land mass & their massed inhabitants, different "trade laws" and "currencies" blahblahblah.
"Japan" didn't have the heavy weight of a uniformed military-complex to fund - "900 military in over 130 countries" - and was "free" to manufacture a rival product - because "choice" is imperative for consumer-culture - and scoop up the monies for a short while. . . remember when "Japan was buying up New York" etc.?
fast forward: Fukushima. now this. down for the count folks. who's next in the "imploding nationstate" game, as we slide into One World meme?
Sucks to be a saver in the U.S., but even worse for those in Japan.
Funny thing is that the original Tyler(s) made off like bandits and sold out to a bunch of Russians. We're still here at Shawshank reading about his/their exploits. Live well, Tylers. You were right to start a financial doom website. Kudos.
Yes... The Tylers sold out and ZH is a shell of itself but last I checked ABC Media is not owned by Putin. Scroll down to the bottom of the homepage it clearly shows ABC Media as the owner of the site.
Ive said it before and i'll say it again until these Tylers and Simons unmask themselves we need to take everything they say with a grain of salt because none of us have any idea who is feeding us this info and what their motive is. Probly explains why their timing of all of this has been such shit...
ABC media was the company set up by the original Tyler(s) who are long gone. I'm not suggesting that Putin has anything to do with it. But clearly the new owners are Russian. They have businesses there too, you know.
There are so many tylers I don't think we can even speculate that's why these people need to start using their own names. I suspect there's a lot of Russian influence but it could just as easily be a bunch of Austrian Econs from America who are sick of the USG. Because we have no idea who is feeding us all of this we cannot even begin to guess and that's the fucking problem.
I wish more people around here would start to demand they drop the avatar and username. We deserve to know who the fuck has been writing all of this...
We're all just people who don't like the system, posting on a website that started out as something else but which has become part of the system. It is slowly dying as a result. Not in terms of clicks (which are probably up), but in terms of substance. The Tylers won't tell us who they are because they don't have to. They make money from our clicks and our posts. The new Tylers rely on what the old Tylers created, which was something truly special. Reminds me of America.
Flip a coin? NSA-FBI-CIA or Russian ownership. And they aren't mutually exclusive.
But I never bothered to check ownership, so I'll take your word at this point. Sounds like Russian Mafia MO.
LTER, in the end it's just your own common sense and moral standards that count. Furthermore, I have learned throughout the years not to extend my allegiance carelessly beyond the boundaries of my family and/or friends.
When push comes to shove, that is where your duties lie, nowhere else.
We should have had a funeral. Let's find a new place to go?
I really do hope they are Russian. Edgar Cayce told us all the truth about Russia, and now the Russians are the only ones who will tell us the truth about anything.
I dont think its Russians or Putin.
Juding from writing styles, some of the Tylers stilll write, I think. But the thing is they know who the Tylers are, only us dont know.
I rate Keiser more than Tylers. Right or wrong but atleast we know where he stands.
For things to flow, you need to create a potential difference, so things flow from higher potential to the lower. Its just physics.
Bears have to sell for bulls to buy.
Corruption works when most of the people are honest or docile, not when everybody is corrupt.
Preachers preach forgiveness so the oppressors can act with impunity and get away with saying sorry when caught.
If the Tylers are/were as intelligent as they are made out to be, they should have figured that the markets are bullshit and the System is corrupt. Tables are tilted in favour of the owners of the system and no analysis of theirs shows that.
Stop believing in saviors, we have to look after our own interest, as everyone else is including Putin and Tylers.
Ya, that's not the same ABC you might be thinking of...
I stand corrected on that point but the issue still stands. We really need to know who the hell is writing all of this...
No we don't. I don't know who you are, so why do I need to know who runs ZH?
If you have a cookie-counter app, you'll discover that ZH has the most cookies of any website, anywhere, outside of pornland. You and I don't know each other, but I bet the NSA knows who we are.
And yes, there are more and more senseless stories on ZH that are nothing but come-ons to the ranters and crazies in our dysfunctional social network.
But we all love the comments. And there is still more real breaking economic news here than anywere else. That's why I keep coming back.
This is because of Google. They own the biggest advertising networks. Doubleclick for example.
Install "lightbeam" and you'll see the links to the companies.
no we dont. we just test the contents on the merit of the evidence presented. If ZH stops presenting credible evidence, it loses readers.
If yer worried about editorializing of the content, a) if it wasnt to your style you wouldnt be heere every day, and b) ZH remains more professionally ambivalent/objective about the evidence it presents than any MSM site
Savers lose big when the dollar keeps free-falling.
USD is going 25% higher against euro, 30% to 35% higher against yen, and 20% to 30% higher against CNY, all within the year.
Can you say rollback prices in US on imported goods, and exporting US inflation to US trading partners overseas?
Short CAT, Boeing, US Steel, etc.
Only another 48 hours is required. Mr. Yellen has got your back, BHO.
Two big problems with the cheap yen export theory - one is that a lot of Jap factories are now in China (with the former US factories) so the yen price has much less effect - and two, is that the 'middlemen and distributors' of Jap products across the globe have had their own profits squeezed by central banks over the last few years - so they are NOT in any hurry to lower prices for Jap products -- rather they are pocketing the difference themselves!
I guess the Yellen's tampon flow reduction didn't stop the train.
His name was Fonzannoon.
His name was fonzannoon.
I thought Uncle Janet didn't need things like tampons...
Dude looks like a lady. Or the other way around? It's confusing.
"Dude looks like a lady"... isn't that a SONG?
http://www.youtube.com/watch?v=nf0oXY4nDxE
Soaring energy prices is always good for the economy. Back before we drilled for oil, plant and animal oil was expensive as fuck, and the economy was awesome. Now we have cheap cars and cheap fuel and the human standard of living is lower than ever. Hmmm maybe I have that switched around.
Since market predictions are pointless and impossible, I offer instead the following political, zeigeist based prediction:
Within six months a Newsweek/Economist/Time type publication will publish a gushing cover story about Kuroda the hero who, with an imagination unparalleled and nerves of steel, did what no one, least of all the narrow Austrian school types thought could be done: Rescue not only Japan from deflation, but the world from a potential depression.
It will all be utter bullshit of course, but don't count on this "Desperate acts of madmen" stuff to carry into the mainstream anytime soon.
Did anyone else realize because of Fridays move just how long we have to go on this whole collapse thing? I was hoping to get it over with in the next few years, but how are we gonna have a revulsion of the money system if Japan can do this and if Germany can start offering negative interest on deposit accounts and we don't hear a peep out of the masses?
I don't think there will be until the supply lines break personally.
James Madison Quotes .... ”The circulation of confidence is better than the circulation of money.”
- amazing what it takes to do a job, when you get there, your perspective changes... that is why king makers and mandarins were effective... maybe joos that were such great government administrators and bankers to royalty knew this very well
- Running an Empire is not really democratic at all
- Looks like we have an Empire, we just don't agree on who is running it
- Maybe last weeks moves were so boring in how newscasters presented the same old narrative, planned apathy through boring presentation
- Many Germans are doing fine, the poor & jobless have no power... but Riots are common enough in Europe... maybe the holidays will bring fresh political discussion & personal meetings with bugermeisters
China can and will crush Japan like a cockroach! One way or another.
China will certainly crush Japan like a cockroach, if China is a steroid-crazed giant that just had a massive, fatal heart attack and then fell on the cockroach, crushing the hapless japanese insect like, well, a bug.
Nanking
YEN 140 !!! COME ON !!!!! WIP OUT THOSE JAPANESE TESTICALS AND BE A MAN.
YELLEN LOOKS LIKE A WOMAN OF STATURE. ONE WHO PRIDES HERSELF ON HER BREAST SIZE. LETS SEE DOLLAR 112 !!!
SHOW ME YOUR TEETS
...chairwoman, yellen show me your screaming eagles !!!
dude, you're seriously sick and need help
+1
I'm in Manila and they're still building condo-scrapers like crazy. The locals say the Chinese and Japanaese are big buyers. Older japanese can come here to retire and still have a good life with a low cost of living.
But kidnapping is as common in Manila as almost young hostess girls.
I don't get Manila. They say after marcos and the US left Clark & Subic that the economy is not strong.
But heard mining picked up for a while.
What do you like in Manila, seafood? Hotels?
Humidity?
Has the price of a Lexus dropped?
The price of a Full Frame Nikon SLR certainly has not.
Downward sticky prices and wages... executive wages never go down.
Funny.
My wife works for Lexus. By next year all new cars for the US market will be made in the US and Canada. They have already begun to source their manufacturing within the states.
As the S&P trades to 5,000 in a couple years and shorts continue to get BTFO just remember, you could have been long at a mere 2000 cost basis.
When the S&P passes 10,000 and you are having to pay for someone to cart away your worthless "precious" yellow metal will Peter Schiff be crying you a river? No, he makes his money in USD from fees, he is laughing all the way to the bank.
When the 10y hits -2.00% as 80% of Americans are out of the labor force but unemployment is printing record lows with AAPL at new record highs will fundamentals matter?
Face it, in the new normal there are two positions; long and wrong.
True. Schiff sounds like a banking name and he is making a bundle on US Fiat.
But some people are never happy. I can see hum bitching and complaining as a part of a schtick and as his personality & identity.
Funny.
I live real business every day. Designing real products that actual people buy. What is strange is it seems the corporations I work for all do worse when the economy is supposedly doing great. Like when stock markets are hitting all time highs. Real product that people want is forced out for inventory that will pump up the values of publicly traded companies.
Billions of dollars of inventory head to retailersthat is never really sold, but it does get marked that way. Here's a fun fact, inventory that leaves your warehouse can be booked as a receivable and marked as sold long before you actually recieve payment for it. This "sold" inventory can allow you to borrow more money from a bank.
Now you know why retail stores are generally incorporated separately from the parent company. The distribution network allows you to channel stuff inventory and mark it as money in the bank allowing you to borrow even more money. Essentially using your inventory as a credit card. Then later in the year you can take back the inventory and count it as a loss, or use it as collateral for the loan you took out earlier.
Accountants have become very adept at utilizing inventory transfer to fake sales, reduce tax liability, and manipulate quarterly earnings. Quarterly earnings reports are total bullshit. A company has a fiscal year, not fiscal quarters. True earnings should only be reported once. But how would stocks trade all year if the only relevant piece of information would come out on one day?
Kuroda is still hoping that the wealth effect will save him. Kind of like how US retailers are hoping that making fancy looking stores will hide the fact that they aren't carrying any inventory. The major problem is consumerism in Japan is dead (thanks to a low net worth younger generation) and the past six years of a relative strong Yen have caused corporations to shift strategy. A company simply can't shift its entire business strategy overnight. The currency volatility also makes it nearly impossible to forecast. In a month or two the Yen might trade at 100, or it might trade at 140. You make the wrong guess and you bankrupt your company.
The global economy is in the hands of mad men. Real business can not get done, which is why every real measure of the economy has flatlined. There may be trillions in paper wealth stored in stock indexes, the problem is this doesn't do anything to help demand for real goods. If it did you would see SUVs leaving stores packed to the brim and 100 cardboard boxes on every curb on trash day.
You are all fucking adults, who supposedly can think and reason for yourselves.
Given the understanding that the MSM are a bunch shills, TPTB globally a bunch of liars I would have thought people here would have learned that you Have to think for yourself, no matter where you get your 'information'.
A lot of the stuff posted here is still presented with an alternative view to that of the MSM much of the time. BUT no matter what is presented here and elsewhere you got your own brains....be grateful you get an alternate angle on things, and get things you wouldn't otherwisse run across.
What a bunch of spoilt brats, spitting their dummies because.......they think ZH isn't as contrary as it used to be.
BUT I think the real reason is because those that couldn't stomach an approach that gave a Russian point of view, rather than MSM TPTB, of Ukraine affairs. So now they are sulking...claiming it is all Russian lovers etc etc... crap crap....
Also investing is your own business at your own risk having weighed all the information and points of view you can, and using your own experience to maker your decisions. Relying on any site or newsletter to baby you is stupid.
But...but...but I really neeeeeed a leader to show me the way.
I realize that I post all of this anti staist crap but when it comes right down to it I am sooooooooo lost and looking for someone else to lead me so I can blame them when it all does not work out the exact way that I was told it would.
/sarc
The truth is that becoming independent and responsible is a process and that which you are reading is the painful shedding of some poor ways of thinking. Everybody is not at the same stahe in this.
The good news, Kina...
They are a furlong, or two, ahead of most people.
Give them a break.
I expect the price of gold is going to go up every day now in AUD terms at least......since I have decided I want to buy some more..... But will immediately drop after the purchase....
Manila is disorganized chaos :)
Japan is organized denial
Shizo Abe's popularity has slipped to 50%, Fukushima continues to leak yet isn't even in the news, Olypmics elan has faded and the expected tax hike has been "postponed" for a little while. YAY !
If you are interested in Japan I recommend Shisaku blog. Good take on things
The Yen Doomsday Machine:
http://winteractionables.com/?p=16131
This is so Fuckushima. Those nationalism fucktards who voted for him belieiving love your country is love your government. I would love to see all their savings in gov bonds vapourised when the whole thing collapses.
Yea, soooooo Americana!
Looks like I'll finally get that new Toyota I wanted at the very reasonable price of $4.00
As Kyle Bass has warned about Japan: a bug, looking for a windshield! It appears as if the bug has grown substantially in size as it looks for that windshield...
http://olduvai.ca
Regarding the posts blasting the "Tylers". I have been reading ZH for several years now and have never been a poster. ZH has changed for sure, but it is still a great counter balance to the cheerleading sites that will not tell you the "why" of market moves. Obviously, ZH pushed the imminent crash scenario that has to this point been pushed back, and back, and back. No one thought, that after thousands of years of civilization and economic theory, that the answer was as simple as printing, printing, and more printing.
If we instantly double the money in everyone's pocket everything will be fixed. . . right?
It's weird how eager people are to be poor in order to increase their competitiveness. A guy starving to death will generally work harder and longer than a guy who showed up in a Bentley. A Keynesian economist would say that owning a Bentley and millions of dollars is bad because it makes your labor less competitive. Anyone who isn't a total fucking retard would say that driving a Bentley and being rich is a GOOD thing.
Back around 2006-2007, lots of Canadians were going to the US to buy stuff because the Canadian dollar was worth more than an American dollar. Keynesians were saying this would be the death of Canada because Canadians had too much prosperity. Canadian citizens didn't see it that way. Stronger currency means it's easier to afford vacations and buy nice things.
Issueing more credit to those with decreaseing income will always end in default. Japan cannot restructure so there is only default, not hyperinflation, just the ending of payments.
This move to force money into other markets will just cause a greater deflationary move after Abe is removed.
All producers will be forced to give shit away for free, but only to those who can issue them new credit that they can never repay.
All economic models will become fraud since thats the only model that will work going foward.
Flow. At all costs.