Pride Before the Fall

Tim Knight from Slope of Hope's picture

From the Slope of Hope: When I saw this article yesterday, I could hardly believe what I was reading. I have never in my life read such naked hubris from a central banker. You just know this remark will be quoted in history books decades from now.

 0331-hubris

To that I only have one response:

0331-dxj

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conraddobler's picture

Do puppets have pride?

Theonewhoknows's picture
Theonewhoknows (not verified) Apr 1, 2016 9:04 AM

Central planning at its best. There is indeed no true limit of that - Japan has still so many freedoms compared to Soviet Russia so Kuroda entertain us while we trying to prevent other central bankers getting the same ideas as you, while we will try to build our portfolios in 'central bank-proof' way. 
 http://independenttrader.org/permanent-portfolio-models-and-their-long-term-roi.html

NoBillsOfCredit's picture

Your PPM has paper "gold" in it. you can't trade the real thing that fast.

mr.Parsifal's picture

Funny how if you leave a stupid comment you get a upvote, but if you state the facts about how the current system works you get downvoted.

 

It seems that sheep don't like the truth. Truth is repulsive and unthinkable.

 

QE is not money printing. When someone buys a goverment bond, in exchange for that security paper they need to pay with money, they don't get it for free. Later when that same entity sells the bonds on the market, even to the central bank, they get their money back. That is not money printing. The amount of exchanged money equals the nominal vallue of the bond.

 

When the central bank tries to sell bonds, that's an inflation symptom and you can hedge in gold, but not while the CB is buying, thats suicide.

NoBillsOfCredit's picture

If that "someone" happens to be a central bank they "print" the money. That is "QE".

exomike's picture

QUESTION? ARE THEY BORROWING THIS MONEY FROM PRIVATE BANKS AND PAYING INTEREST? OR, ARE THEY "PRINTING" IT VIA COMPUTER NOTATIONS WITH NO NEED TO PAY INTEREST TO ANYONE? 

NoBillsOfCredit's picture

Only the principal of the loan is "printed". If the interest rates are zero, the bond issuer does not pay interest. In that situation they can continue to print money forever. Until the people and the market decide their fraudulent currency is worthless.

RadioFlyer's picture
RadioFlyer (not verified) exomike Apr 1, 2016 7:34 AM

Yes.

 

There are no limits, so all of the above.

Vendetta's picture

anything and everything is possible numbers wise except 'saving' the system... they know it .... I know it .... many of us ZH'rs know it. 

Ola Nordmann's picture

What is it a chart of?

IronForge's picture

They're fortunate that they're supported by Domestic Savers and Diversified Multinationals.

Now, to break free from always having to sell Bonds to buy USD to keep the JPY Deflated...

...that's another problem in this Grand Puzzle.

JuicedGamma's picture

In case you didn't notice, they've gone full retard.

RadioFlyer's picture
RadioFlyer (not verified) BorisTheBlade Apr 1, 2016 7:34 AM

Known for going full retard myself, I concur.

mr.Parsifal's picture

QE isn't money printing. It's an exchange of balance sheet assets. BOJ exchanges currency for bonds of same nominal value, therefore the amount of money in the economy did not increase. BOJ has bonds on their balance sheet, and the private sector gets liquidity.

The only problem there is that BOJ can't sell the bonds without increasing the rates to 2% or more, because no one would buy them, and that would blow up the economy.

While being in a QE trap the BOJ needs to hold and let the bonds mature.

So, no problem there, go back to sleep sheep.

 

Get Richard Koo for FED president

NoBillsOfCredit's picture

What you overlook is where the BOJ gets their so-called assets. It's called the printing press. Or a computer.

hxc's picture

Have you never heard of the yield curve, you fucking dumbass?

SixIsNinE's picture

Mr. Parsifal - "The only problem there is that BOJ can't sell the bonds without increasing the rates to 2% or more, because no one would buy them, and that would blow up the economy."

wait - aren't we in NIRP world now?  Fractional Banksters can move in many unconventional policies... this is a finite collection of Central Banksters and as they all continue to play along, with no limit to the NIRPside, surely there is much wiggle room before 2%, no?

Anything is possible in NIRPWorld ... besides, the Japs have diversified production to China and have their sex robots coming on line to quell domestic unrest, and no Migrant ISIS refugee problems reported either in Japan.

We're really quite a resilient bunch us Humans you know

mr.Parsifal's picture

There is no fractional reserve banking since the seventies.

Today private banks create money on consumer demand, out of nothing. Today loans create savings, and not the other way around like before when savings would get loaned out, no, today first loans are created by banks, than that money from the loan gets put into a savings account.

 

The private sector, e.g. invesment funds, pension funds, private banks etc. will not buy back the goverment bonds from the central bank if they do not get a nice premium on it, it's better to sit on a pile of cash. So BOJ would have to rise the rates if it wants to sell the bonds back to the market. That is an impossibility, so they will let the bonds mature, and than the state treasury pays the central bank.

NIRP/ZIRP is good when the central bank is buying bonds from the private sector, it's not helping when the CB tries to sell them.

Thats called a QE trap.

LawsofPhysics's picture

Yes, bankers and financiers are in fact nothing but useless overcompensated middlemen in the current monetary system.  They produce nothing of real value and are in fact worthless pieces of shit.  Same applies to their political puppets. No worries, the economy will evolve.  These middlemen that are stuck between the computer/printer (where "money" is created without real work or collateral) and the producer/consumer in the real economy will go the way of the dodo as the real economy evolves and finally executes the middlemen.

malek's picture

 There is no fractional reserve banking since the seventies.

How the fuck does that matter?
The "reserves" are or would be fiat, created out of thin air, anyway.

Ajax_USB_Port_Repair_Service_'s picture

Cue the black swan.

 

CHoward's picture

WELL...at least we know where his thinking is.  I can't say the same for our "Central Bank" here in the United States!

Kagemusho's picture

Peter Pan-san drank too much of the water at Davos. People may arrive there normal but leave acting like they're high on something illegal.

conraddobler's picture

 

Why do I eqaute EASING with some kind of monetary diarrhea?

Withdrawn Sanction's picture

No one disputes that the BoJ can create as many Yen as it wishes.  What is in dispute is whether it can confer value on those Yen.  

MrBoompi's picture

Like we didn't already know there's no limit to the fucking money you can create and give to yourselves?  You douche.....

roisaber's picture

HAY GUISE I HAVE THE MOST NUMBERS DO I WIN?

August's picture

The Social Sciences, as they are called, have established that the numbers by themselves convey zero winnings, or status.

To be effective, the numbers must be converted into actual shit, which can can then be conspicuously displayed, consumed, and marvelled at, by one's peers.  At that point, then, you have "won", or at least advanced your marker on the great social game-board.  Personally I prefer the little silver-colored race-car.

tarabel's picture

 

 

Which are you using? A sperm counter or a radiation meter?

VWAndy's picture

 Well its either that or start blowing shit up.

Setarcos's picture

Probably both yeah, but hopefully not full Monty nooclar, as Dubya might say, assuming he is still able to string a few words together.

Citxmech's picture

This'll end well.

Can't wait until they have to start using scientific notation on their bank notes.

the edge of chaos's picture

there won`t be any bank notes...just electronic money!!! its perfect!!!

 

mr.Parsifal's picture

Time is infinite too, you know.

Or are we running out of time?

Tell me, when does the world end so we can stop counting then.

 

Stuck on Zero's picture

I've heard statements like that before ... just before the criminal reaches the end of his rope on the scaffold.