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Bank Of Japan Warns Abe Over "Fiscal Responsibility" While Monetizing All Its Debt

Tyler Durden's picture




 

If one were to look up the definition of hypocrisy, the image of BoJ head Kuroda should be front-and-center. Having tripled-down on his money-printing and ETF-buying largesse just last week, he came out swinging last night at the government's fiscal irresponsibility blasting Abe's policies by saying Japan's fiscal health "is the responsibility of parliament and the government, not an issue for the central bank to be held responsible for." Aside from the fact that he is directly monetizing all JGB issuance - thus enabling Abe's arrogant fiscal stimulus plan (by issuing 30Y and 40Y debt), Bloomberg notes that "Kuroda is making it crystal clear the government has to tackle the debt problem and if fiscal trust is lost that’s not going to be on the BOJ." The world has truly gone mad.

 

Seemingly paying the same lip-service as Bernanke and Yellen in the US and Draghi in Europe, BoJ's Haruhiko Kuroda is carefully positioning the blame for lack of growth and economic chaos on the government's lack of growth-oriented policies... and not the central bank's enabling experiments... (via Bloomberg)

Bank of Japan chief Haruhiko Kuroda emphasized the onus is on the government to strengthen its finances after Prime Minister Shinzo Abe postponed a sales-tax hike and outlined plans to boost fiscal stimulus.

 

“It’s the responsibility of parliament and the government, not an issue for the central bank to be held responsible for,” Kuroda said when asked about risks to Japan’s fiscal health. The BOJ’s job is to achieve its inflation target, he said at a press conference in Tokyo.

 

Kuroda’s repeated comments at a press conference today on the importance of fiscal discipline indicate the governor is unhappy and may signal a change in strategy, said Credit Suisse Group AG economist Hiromichi Shirakawa.

 

...

 

“Kuroda is making it crystal clear the government has to tackle the debt problem and if fiscal trust is lost that’s not going to be on the BOJ,” said Shirakawa, a former BOJ official. “This is true, but he used to highlight that the BOJ and the government were working together. Abe might have created an enemy by postponing the sales-tax hike.”

*  *  *

So when Japan finally goes entirely tits-up, we now know, it was all Abe's fault... and nothing to do with reckless money-printing and leveraged buying of the nation's stocks by a maniacal central banker...

Is this not the same as a price-cutting drug dealer blaming the drug-addicted customer for not being able to afford better drugs?

 

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Wed, 11/19/2014 - 10:38 | 5465058 Hannibal Barca
Hannibal Barca's picture

Game over!

Wed, 11/19/2014 - 10:42 | 5465068 Greenskeeper_Carl
Greenskeeper_Carl's picture

Coming soon to the US and Europe. It's all they know how to do. We are looking into our future right here.

Wed, 11/19/2014 - 10:43 | 5465074 Dr. Engali
Dr. Engali's picture

Yep, I just hope it doesn't take 25+ years to get here.

Wed, 11/19/2014 - 10:52 | 5465105 Pool Shark
Pool Shark's picture

 

 

"Kuroda is making it crystal clear the government has to tackle the debt problem and if fiscal trust is lost that’s not going to be on the BOJ."

 

Said the drug dealer to the addict...


Wed, 11/19/2014 - 11:02 | 5465128 RafterManFMJ
RafterManFMJ's picture

Where's that graph showing Yen purchasing power vs. sales of tentacle porn? That chart explains everything about what's wrong with Japan.

Wed, 11/19/2014 - 13:53 | 5465995 TheReplacement
TheReplacement's picture

The invention of tentacle porn explains everything about what's wrong with Japan.  No charts necessary. 

Japan, inventing 98% of the world's weird shit since 1951.

Wed, 11/19/2014 - 13:01 | 5465739 KnuckleDragger-X
KnuckleDragger-X's picture

The BOJ is trying to wipe their fingerprints off the murder weapon...

Wed, 11/19/2014 - 11:03 | 5465138 Greenskeeper_Carl
Greenskeeper_Carl's picture

Me too, doc. Since it is pretty much inevitable at this point , I'd rather it happen while I am still young. My only hope is that when it happens, the result is decentralization, not moar and bigger govts. The US would probably function better if it was several smaller, separate states.

Wed, 11/19/2014 - 11:10 | 5465172 yogibear
yogibear's picture

"I just hope it doesn't take 25+ years to get here."

You can expect QE 4 for sure.  It's that or a 25 year repression.

More debt and money printing is the only mode of operation going forward for the US as well. Until it all blows up. Japan is much further along. It's the federal reserve's grand PhD  Keynesian experiment. Oh well it blew up.

Back to the  Keynesian theory drawing board.

Wed, 11/19/2014 - 10:42 | 5465070 TruthInSunshine
TruthInSunshine's picture

JPY to 140 to USD w/in 6 months, max.

Kuroda has doubled down on stupidity and unfortunately for Japan's citizenry, the crazy train is speeding up.

Wed, 11/19/2014 - 13:03 | 5465756 suteibu
suteibu's picture

This is about the December snap election.  The BOJ is bailing on Abe.  Watch what other dominoes fall between now and then and who steps forward.  Aso is making sounds pleasant to the IMF ears already.

Wed, 11/19/2014 - 10:42 | 5465069 Dr. Engali
Dr. Engali's picture

The only way .gov will ever "tackle the debt" and reign in spending is if the market forces them to. As long and the central banks fuck with rates no government will ever be held accountable.

Wed, 11/19/2014 - 10:44 | 5465077 SickDollar
SickDollar's picture

exactly doc , which really sucks cuz we need more sheeple to wake up

Wed, 11/19/2014 - 12:14 | 5465474 The Most Intere...
The Most Interesting Frog in the World's picture

Sheeple are sheeple cause they never wake the fuck up.

Wed, 11/19/2014 - 13:02 | 5465753 KnuckleDragger-X
KnuckleDragger-X's picture

Your mistaking awake for aware. The cattle going into the slaughterhouse are wide awake.

Wed, 11/19/2014 - 10:48 | 5465096 TruthInSunshine
TruthInSunshine's picture

This is one way to try and tackle Japanese debt; the faster & deeper that they debase the relative value of the Yen, the easier (on a relative basis) it will be to service the current debt payments and diminish the real level of the existing debt (they are sparking a true currency war with co-Asian, export-dependent nations such as China & South Korea, though).

This is only possible when a nation is able to print as much electronic fiat as imaginable, and there is an entity such as a central bank that is willing to monetize all future debt issuance regardless of artificially low yields, and that will serve intentionally as a toxic repository of spoiled assets and ongoing toxic asset accumulation.

Wed, 11/19/2014 - 11:48 | 5465338 forwardho
forwardho's picture

"Tackle the debt"?

.gov has been running without a budget for 6 years.

By LAW (ha ha) there must be a budget every year. 

Continuing Resolution = unlimited .gov spending = We all get to pretend the Country can support people who are net liabilitys.

Solving the debt problem will involve lowering the population level by 50%. Still want it solved?

Have no fear, since that is the end result of the ACA.

 

Wed, 11/19/2014 - 14:42 | 5466194 sun tzu
sun tzu's picture

Bond vigilantes were killed by the Fed gang

Wed, 11/19/2014 - 10:44 | 5465072 SpanishGoop
SpanishGoop's picture

BoJ chief Harikiri Kuroda says...

Well if jumping from a building while shooting yourself through the head with a nailgun qualifies as harikiri.

 

 

Wed, 11/19/2014 - 10:42 | 5465073 sodbuster
sodbuster's picture

What I think is happening is the central banks see failure looming directly ahead- time to shift the blame and go into survival mode.

Wed, 11/19/2014 - 10:45 | 5465085 i_call_you_my_base
i_call_you_my_base's picture

It will work.

Wed, 11/19/2014 - 10:48 | 5465078 firstdivision
firstdivision's picture

Kuroda enabled Abe's economic policies.  This is like the Kettle calling out the Pot.

Mostly on Topic: Random Walk Bitches! http://finviz.com/futures_charts.ashx?t=ES&p=w1

Wed, 11/19/2014 - 10:44 | 5465084 NotApplicable
NotApplicable's picture

Wow, what a fucking asshole! It amazes me that such scum can walk the Earth unmolested.

Wed, 11/19/2014 - 10:44 | 5465087 all-priced-in
all-priced-in's picture

Cripple fight!

 

 

Wed, 11/19/2014 - 10:47 | 5465091 Tjeff1
Tjeff1's picture

You know the game is over when the criminals start to turn on each other.

Wed, 11/19/2014 - 10:46 | 5465092 _ConanTheLibert...
_ConanTheLibertarian_'s picture

What??! BOJ refuses moar QE ? Ridiculous!

/s

Wed, 11/19/2014 - 10:48 | 5465097 ukspreads
ukspreads's picture

"indicate the governor is unhappy and may signal a change in strategy"

 

Way too far down that road now to change.... More like change in prime minister!

Wed, 11/19/2014 - 10:52 | 5465108 Everybodys All ...
Everybodys All American's picture

At some point with the insane talking points coming out of Japan the word responsibility and irresponsibility are nearly interchangeable. Just frightening how much the world has become unhinged from reality.

Wed, 11/19/2014 - 10:54 | 5465110 q99x2
q99x2's picture

Arrest him now and get it over with. Arrest Draghi, Arrest Yellen Arrest Bernanke, Blankfein, Dimon and Greenspan Arrest them all.

Wed, 11/19/2014 - 11:14 | 5465183 jose.six.pack
jose.six.pack's picture

Who is going to arrest them? It's a circle-jerk scheme.

Wed, 11/19/2014 - 11:30 | 5465251 LooseLee
LooseLee's picture

Arrest? How about execute them for treason against humanity?

Wed, 11/19/2014 - 11:01 | 5465125 Hamm Jamm
Hamm Jamm's picture

bank of J warns Abe ....   HAHAHAHAHAHA    warns him about what ...    HOLD onto your Prick, cause this shit is gonna get real ...   real crappy in a jiffy

 

bunch of dipshits

Wed, 11/19/2014 - 11:00 | 5465127 schadenfreude
schadenfreude's picture

The deal was to Increase Sales Tax for QE. But Abe didn't deliver and now Kuroda is pissed.

Wed, 11/19/2014 - 11:31 | 5465258 bbq on whitehou...
bbq on whitehouse lawn's picture

Yes as a fig leaf. Now they dont even have that to hid from the full monitization of debt. The Japanese cant even try and save face now. Central banks dont like to be humiliated.
The real danger is the Japanese people who may now find out they are the next hyper-inflation if the dont start cracking skulls.

Wed, 11/19/2014 - 11:05 | 5465145 Wild Theories
Wild Theories's picture

of course the economy should be the responsibility of the govt first and foremost, it never should have fallen on CBs to do everything, right or wrong

same goes for the rest of the world, it's the govts that need to get their shit together, instead of sitting on their asses expectings CBs to perform magic

CBs are not omnipotent

Wed, 11/19/2014 - 11:18 | 5465200 Everybodys All ...
Everybodys All American's picture

Tell that to Yellen, Bernanke , Greenspan, or economists like Krugman. These are Keynesians who think they can do no wrong with their monetary policy instruments.

Wed, 11/19/2014 - 11:07 | 5465155 astoriajoe
astoriajoe's picture

What was that movie where Matt Damon was a siamese twin with Greg Kinnear?

Wed, 11/19/2014 - 12:39 | 5465635 lasvegaspersona
lasvegaspersona's picture

Ishtar

Wed, 11/19/2014 - 11:12 | 5465174 Alberich
Alberich's picture

"It's your fault you're drunk!"
"It's your fault I'm drinking!!"

Let's hear it for Abe and Kuroda, folks. They're here all week!

Wed, 11/19/2014 - 11:15 | 5465181 Bell's 2 hearted
Bell's 2 hearted's picture

 "he came out swinging last night at the government's fiscal irresponsibility blasting Abe's policies by saying Japan's fiscal health "is the responsibility of parliament and the government, not an issue for the central bank to be held responsible for."

 

the same could be said for US

 

the point i've made 4 years running ... the stock market is like a cattle prod to congress/parliament ... monetary policy (stocks keep hitting all time highs) allows elected officials to sit on hands ... if central bankers want changes ... drain liquidity (markets will tank) and changes will be made

 

the damage to done to economies by central banks - immense

Wed, 11/19/2014 - 11:28 | 5465247 Son of Captain Nemo
Son of Captain Nemo's picture

Might as well say it again...

Nagasaki, Hiroshima, Fukushima now unlimited QE as the Roman Candle on the birthday cake! And may the Western banks and it's peoples that allow these catastrophes to continue in perpetuity burn in Hell!

Those poor bastards!

 

Wed, 11/19/2014 - 11:33 | 5465266 starman
starman's picture

Thats it I'm going to monetize my debt as well! I'll start by refinanceing my house taking all the equity out so I can pay off my credit cards the Range Rover!

Then I'll start paying off the house and the equity with the equity loan! 

Man, Im a fucking genius!  

Wed, 11/19/2014 - 11:35 | 5465277 yogibear
yogibear's picture

When your debt if $700,000 and a loaf of bread is $1,000 it's a no-brainer.

Do it while you can.

Wed, 11/19/2014 - 11:32 | 5465267 NoWayJose
NoWayJose's picture

Abe is starting to talk about cutting corporate taxes, along with holding off on the next government sales tax increase. Rather than admit defeat, Abe could eliminate ALL taxes - and just use debt to pay for all government spending. Because the BofJ is willing to buy up all debt - why not? A true Keynesian Utopia!

Wed, 11/19/2014 - 11:34 | 5465273 yogibear
yogibear's picture

Keep monetizing debt to 0. Yep, that will help the debtors.

Wed, 11/19/2014 - 12:33 | 5465598 lasvegaspersona
lasvegaspersona's picture

Most of us are both debtors and savers. Soon the debt will be seen to be far in excess of what it is supposed to be able to procure.

At that point wealth without counterparty might be nice.

In the mean while we just play with our paper like those kids making castles with Reichemarks in the Weimar.

Wed, 11/19/2014 - 12:02 | 5465408 moneybots
moneybots's picture
"Bank Of Japan Warns Abe Over "Fiscal Responsibility" While Monetizing All Its Debt"

 

Wait till Christine Lagarde chimes in.

Wed, 11/19/2014 - 12:13 | 5465463 Heavy
Heavy's picture

haha is funny

Wed, 11/19/2014 - 12:30 | 5465578 lasvegaspersona
lasvegaspersona's picture

Hey...just let it happen......

I'm short Yen and it is going to happen anyway.....

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