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Bank Of Japan Warns Abe Over "Fiscal Responsibility" While Monetizing All Its Debt
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.”
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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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Game over!
Coming soon to the US and Europe. It's all they know how to do. We are looking into our future right here.
Yep, I just hope it doesn't take 25+ years to get here.
"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...
Where's that graph showing Yen purchasing power vs. sales of tentacle porn? That chart explains everything about what's wrong with Japan.
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.
The BOJ is trying to wipe their fingerprints off the murder weapon...
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.
"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.
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.
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.
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.
exactly doc , which really sucks cuz we need more sheeple to wake up
Sheeple are sheeple cause they never wake the fuck up.
Your mistaking awake for aware. The cattle going into the slaughterhouse are wide awake.
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.
"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.
Bond vigilantes were killed by the Fed gang
BoJ chief Harikiri Kuroda says...
Well if jumping from a building while shooting yourself through the head with a nailgun qualifies as harikiri.
What I think is happening is the central banks see failure looming directly ahead- time to shift the blame and go into survival mode.
It will work.
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
Wow, what a fucking asshole! It amazes me that such scum can walk the Earth unmolested.
Cripple fight!
You know the game is over when the criminals start to turn on each other.
What??! BOJ refuses moar QE ? Ridiculous!
/s
"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!
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.
Arrest him now and get it over with. Arrest Draghi, Arrest Yellen Arrest Bernanke, Blankfein, Dimon and Greenspan Arrest them all.
Who is going to arrest them? It's a circle-jerk scheme.
Arrest? How about execute them for treason against humanity?
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
The deal was to Increase Sales Tax for QE. But Abe didn't deliver and now Kuroda is pissed.
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.
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
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.
What was that movie where Matt Damon was a siamese twin with Greg Kinnear?
Ishtar
"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!
"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
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!
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!
When your debt if $700,000 and a loaf of bread is $1,000 it's a no-brainer.
Do it while you can.
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!
Keep monetizing debt to 0. Yep, that will help the debtors.
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.
Wait till Christine Lagarde chimes in.
haha is funny
Hey...just let it happen......
I'm short Yen and it is going to happen anyway.....