"It's Not As Though We Can Keep Lowering Rates Forever," A BOJ Official Said

Tyler Durden's picture

As we reported earlier, moments ago the USDJPY spiked on the latest Nikkei market trial balloon, which as we also reported, was old news, according to which Kuroda is now considering conducting a reverse Operation Twist, where it forces a selloff in the long end, while push short-ends even more into record negative territory courtesy of another rate cut.

As we explained last week, it won't work (read here for the details). But what attracted our attention was the quote by a BOJ official, which once again demonstrates the farce that passes for "clear, lucid" central banker thought in the "new normal" (from Nikkei):

Any decision to take rates deeper below zero will require careful consideration of the yen's exchange rate and the state of the broader economy. And debate will likely proceed cautiously. "It's not as though we can keep lowering rates forever," a BOJ official said.

And why not?

Actually, we take that back: this is not a farce, this may well be the cold, hard truth, because we have now reached a point where even a BOJ member is wondering out loud just how far the idiocy of his central banking peers can reach, and if it even has an actual limit. Sadly, for the BOJ - and the global market -  we are now virtually certain that the answer to the question we posed last week, namely whether "The Bank Of Japan Is About To Unleash A Global Selloff", is a resounding yes.

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wisehiney's picture

Expiry on Friday.

Panopticon 131's picture

Two days ago, the Wall Street Journal explored behind the curtain discussions to give central banks direct control over economic stimulus programs = helicopter money...taking their power to manipulate the economies well beyond QE.  


"Helicopter money, which could involve, for example, an increase in public spending or tax cuts financed by the central bank, takes central banks beyond their traditional realm of influencing the price and volume of credit to determining how public money is spent—the domain of elected politicians."

The target is INFLATION - as championed by top banking henchman Larry Summers last month in a Washington Post column.

The Establishment is clamoring for student loan debt forgiveness, hikes in minumum wage, increases in entitlement spending, tax subsidies, etc

AC_Doctor's picture

Bring it on mutherfuckers...

photonsoflight's picture

"It's not as though we can keep lowering rates forever," a BOJ official said.


I've always said the gov should raise taxes till you pay 100% then this stupid game would be over. This is close enough.

Seasmoke's picture

You will lower it again and again, whenever The Tribe tells you to. The entire Ponzi of the Tribe is counting on you Kamikaze. 

Fuku Ben's picture

It's not like anyone ever agreed to this global ponzi fraud of a financial system now is it. When these global reserve banks stop whining about the problems they've created and publicly disclose what they've done and why they've done it they'll get the help they need. No an instant earlier.

GreatUncle's picture

You need help matey you really do...

"the problems they've created and publicly disclose what they've done and why they've done it"

So to here to help you ...

1.) We robbed you fucking lot.

2.) Because we can.

The problem for ordinary people is not that ... it is by robbing the system they fucked up any monetary system worth a dam to ever work again. Now as I see it unless the debt is paid off by those who have all the money then it continues because if it goes bust then it turns to ratshit.

buzzsaw99's picture

not skeert. if the s&p gets down around 1850 the fed will step in.

Hohum's picture

"It's not as though we can keep lowering rates forever," a BOJ official said.

Bad attitude.

UnschooledAustrianEconomist's picture

Yeah, I really do miss that good old "Banzai!" attitude. The Japanese are not what they used to be :-(

Doom Porn Star's picture

Isn't NIRP is analogous to inflation?

IF a Central Bank cannot achieve a 2% inflation target does a NIRP of 2% destroy credit/currency with the same effectiveness?

In a 2% inflationary environment the banks direct the damage to some extent more or less by chosing to whom they extend loans and at what effective/real interest rate they originate those loans at.

NIRP is not being provided to everyone who wants to borrow and thus the oppression/damage/costs of NIRP are also to some extent more or less decided by banks. 

IMHO, private control of interest rate allocation is as much a problem as private control of credit/currency emittance.

GunnerySgtHartman's picture

Isn't NIRP is analogous to inflation?

I believe so, if looked at from the standpoint of currency debasement.  It is, at the very least, a means of confiscating wealth from the masses and concentrating it in the hands of a very few.  And if the Fed does implement a NIRP policy, I look for PMs to skyrocket.

Atomizer's picture

Go back to IMF thread. Read links, it changes October 1, 2016. Important for FX market. Subsequently, she is going on trial for embezzlement in December. Cunt lick Lagarde. 

Watch this from beginning of August 2016. 

Is More Stimulus on the Horizon for the BOJ? [Video ...

Rehab Willie's picture

set the rate at 0.000000001% and be done with it.

Pieter Bruegel the Elder's picture

You can and you know you will, you peace of sh*t.

Father ¢hristmas's picture

Lol@ ZH Kuroda pics.  My favorite is the one where he has his hand to his ear.

SharkBit's picture

Sure you can ass wipe.  I will deposit with you Y1,000 with the promise of getting nothing back.  Makes perfet sense.  Party on dickhead.

gregga777's picture

Bring on the collapse!!! And, assuming that any of these hereditary inbred subnormal IQ elite morons survive the revolution they should all be housed in zoos around the United States. Then every American can visit the zoo to show their deep and abiding contempt for all of the (formerly) privileged, pampered and protected elite morons who brought so much suffering down on the American People. But, hopefully Janet Yellen, Benjamin Shalom Bernanke and Allan Greenspan will end up swinging from lampposts.

CoastalCowboy's picture


"- Infinity" is mathematically valid.

the grateful unemployed's picture

i think after -100 points they have to start paying you interest again, but not sure

GreatUncle's picture

Japan is the picture pin up of bailed out banker nations for the rest of the world.

We have not started Abe's CTRL-P level quite yet but it does look ominous.

If Japan however defaults curtains, the lot goes globally ====  otherwise known as there is no solution.

I won't hold my breath but Japan is one I watch like an economic experiment and the other is Greece along the lines what hardship a nation will suffer before it revolts.

CHoward's picture



Sure you can.  Remember, there are just as many numbers south of zero as there are north.  Go for it.  How low can you go?

tricorn teacup's picture

How low can interest rates go?  How low before kinetic lead gets involved?

ParticularlyStupidHumanoid's picture

Thanks to infinitesimals the US Fed can take forever to reach 1% as well.

DrBrown's picture

Hory mackro. 

mosfet's picture

Rates going lower forever is the very basis upon which Japan & Europe's negative yielding bond market functions.  Does anyone seriously believe investors buy that shit cause they like 'paying' interest to a bankrupt government?  Kuroda & Draghi knew this full well in advance of implementing NIRP - which is why they should be tried for treason.

Inside of 2 years, NIRP will be widely regarded as one of several monetary disasters concocted by greedy & incompetent CB's.  The trajectory is set - no way out from here - and no preventing the decimation of Japan & Europe, along with US & UK's economy.  Get your gold & gold stocks while they're bargains.  The fireworks from Sept 21 thru December are just the pre-show.

FlKeysFisherman's picture

"It's not as though we can keep lowering rates forever."


Huh, no wonder they make the big bucks.

moonmac's picture

Prices keep dropping in my industry (PVF). It’s now below our cost to produce in many instances. There’s no way the Fed can raise rates anytime soon. 

dealmakerman's picture

Here is a great paper on how to protect yourself with the War on Cash and negative interest rates thats based on a variation of Gresham's Law. https://bunky1787.wordpress.com/2016/09/04/can-you-profit-by-saving-an-extreme-money-overture/

Bemused Observer's picture

""It's Not As Though We Can Keep Lowering Rates Forever," A BOJ Official Said"

Dear BOJ,

We know, but it's just been so much fun to watch you try!...Anyway, no hurry. Take your time, get it out of your system. We'll still be here when you're done.


The Economy

JailBanksters's picture

That's why the Feral Reserves Plan is so great

Keep Rates the Same

Keep Filling up the swimming pool with a Fire Hose

While draining the pool from the bottom

The Money Pool is constantly topped up with fresh money, while

stealing money from the bottom.

It's a great plan, it's a brilliant plan.