This page has been archived and commenting is disabled.

Bank of Japan Sprays World With Surprising ¥10 Trillion Gift In Valentine's Day Liquidity

Tyler Durden's picture


In a move that will surely shock, shock, the monetary purists out there, the Bank of Japan has just gone and done what we predicted back in May 2011, with the first of our "Hyprintspeed" series articles: "A Look At The BOJ's Current, And Future, Quantitative Easing" (the second one which discussed the imminent advent of the ¥1 quadrillion in total debt threshold was also fulfilled three weeks ago). So just what did the BOJ do? Why nothing short of join the ECB, the BOE, and the Fed (and don't get us started on those crack FX traders at the SNB) in electronically printing even more 1 and 0-based monetary equivalents (full statement here). From WSJ: "The Bank of Japan surprised markets Tuesday by implementing new easing policies and moving closer to an explicit price target, the latest sign of growing worries around the world about the ripple effects of the European debt crisis on the global economy. With interest rates already close to zero, the BOJ has relied in recent months on asset purchases to stimulate the economy. In Tuesday's meeting, the central bank expanded that plan by ¥10 trillion, or about $130 billion. The facility, which includes low-cost loans, is now worth about ¥65 trillion, or $844 billion." The rub however lies in the total Japanese GDP, which at last check was $6 trillion (give or take), and declining. Which means this announcement was the functional equivalent to a surprise $325 billion QE announced by the Fed. What is ironic is the market reaction: the BOJ expands its LSAP by 18% and the USDJPY moves by 30 pips. As for gold, not a peep: as if the market has now priced in that the world's central banks will dilute themselves to death. Unfortunately, it is only at death, and the failure of all status quo fiat paper, that the real value of the yellow metal, whose metallic nature continues to be suppressed via paper pathways, will truly shine.

The WSJ explains the BOJ's stunning decision further:

Only one out of the 11 analysts polled by Dow Jones Newswires had predicted the BOJ to ease this week.


Most BOJ watchers had said that while there were concerns over the impact of the strong yen and the European debt crisis, neither financial nor economic conditions had worsened to levels that warranted immediate further action.


The BOJ policy board also revised the wording of its "understanding of price stability," saying now it has set a "price stability goal" of 2% or lower in the core consumer price index in the medium- to long-term and a goal of 1% growth for the time being. For calendar year 2011, Japan's core consumer price index—excluding food prices—was negative 0.3%.


The bank had come under criticism that its definition of price stability, the goal it seeks to achieve in its fight against deflation, was too convoluted and vague. Such attacks had increased in recent weeks after the U.S. Federal Reserve in late January adopted a more explicit price target.


Faced with a prolonged deflation, politicians have stepped up their calls on the BOJ to take fresh action, with some threatening to revise legislation to strip away the central bank's independence from the government.

First of all, don't get us started on inflation targeting. Or rather, get Dylan Grice started: he will tell you all about it, and then some.

And while we now really just can't wait to bring to our readers what the global central bank balance sheet will look like after February, when it takes into account the recent GBP50 billlion BOE expansion, the €500-€1000 billion European LTRO part Deux, and now the ¥10 trillion additional BOJ easing, here is what we said on the topic back in May of 2011.

"In a sign some in the BOJ were more cautious about the economic outlook than Shirakawa, Deputy Governor Kiyohiko Nishimura proposed on Thursday expanding the central bank's asset buying scheme by 5 trillion yen ($62 billion).  While the proposal was outvoted by the board, some market players said it may be a sign the BOJ may loosen policy as early as next month. "And loosen it will, because unfortunately as the past 30 years have shown, the country at this point has no other choice but to take the same toxic medicine which merely removes the symptoms briefly, while making the underlying problems far worse.  Also, with the Fed threatening to end QE2 in precisely two months, someone out there has to be dumping hundreds of billions in infinitely dilutable 1 and 0s into primary dealer prop desks. Furthermore, as shown above, the BOJ needs not to buy securities outright: tinkering with the shadow economy in the form of the repo market will provide just as desirable an outcome… If, of course, said outcome is to see gold and silver continue on their relentless rise to new all time record highs. And/or higher. Because the only thing limiting the price of gold is price stupidity and the amount of paper money in existence. Both are infinite.

It's good to see that our May 2011 quote on what the only realy gating factor on the price of gold is has now been broadly absorbed in the asset management vernacular. And yes, once the market does realize what is happening, following the usual 6-8 week uptake period, expect another step function higher in precious metals, CME margin hikes notwithstanding (and the recent CME faux margin cut bull trap aside).

Finally, unlike our own Fed, at least the BOJ is not shy telling the world it is openly buying up REITs and ETFs. For some odd reason our boys over at Liberty 33 are still playing so coy they can only punch their equity trade tickets via Citadel.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 02/14/2012 - 01:31 | 2156508 jomama
jomama's picture

meh, what's a few trillion here or there these days?

Tue, 02/14/2012 - 01:44 | 2156531 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fiat is a wash.

Tue, 02/14/2012 - 01:51 | 2156546 Matt
Matt's picture

What Jerks. I mean, if they were just going to print that amount of money anyway, they could have saved us all the drama and simply purchased ALL of Greece's debt.

Tue, 02/14/2012 - 02:27 | 2156599 PY-129-20
PY-129-20's picture

Now I have to decide which story is more worrisome. The story about that Russian Sub that was on fire with nukes loaded and minutes away from exploding and scrubing off a piece of Russia or this story. [LINK]


Tue, 02/14/2012 - 02:46 | 2156617 Michael
Michael's picture

Thee whole worldwide monetary ponzi scheme is going to blow up in the most spectacular fashion, making that Russian Sub story look insignificant.

Tue, 02/14/2012 - 02:58 | 2156625 resurger
resurger's picture

the big guys will eviscerate the markets after most of the dividends are paid out to the big investors. Then the "Big Short" will kick in...

btw: Kicking the Can is bullshit, it's no longer a fucking CAN! it's a CRATE, BARREL, PAPER BALL anything but a can!

Tue, 02/14/2012 - 03:45 | 2156677 Michael
Michael's picture

We Better Break $5 Million Dollars Today! I Don't Give A Fuck!!-I-Don-t-Give-A-****!

Tue, 02/14/2012 - 03:57 | 2156686 Michael
Michael's picture

I think the world just needs to go into a maintenance phase.

The planet doesn't need anymore growth.

Tue, 02/14/2012 - 06:48 | 2156764 Michael
Michael's picture

The most influential device ever devised by man is and always will be the BIC Lighter, not the Apple I-Pod and facsimile. Nothing to get excited about there.

Tue, 02/14/2012 - 07:14 | 2156780 Global Hunter
Global Hunter's picture

When the SHTF a Bic lighter will be very valuable.  

Tue, 02/14/2012 - 03:02 | 2156629 Silver Bug
Silver Bug's picture

The fiat just never stops until it commits suicide. QE to infinity is here. We will be forced back to the gold standard.

Tue, 02/14/2012 - 02:19 | 2156594 Banksters
Banksters's picture

Shouldn't we just say that central banksters are the masters of the universe?

Tue, 02/14/2012 - 02:22 | 2156598 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They ride unicorns and spit fireballs!  Bow to the gods of finance, they are the all knowing and all dancing crap of the universe!

Tue, 02/14/2012 - 04:10 | 2156704 Michael
Michael's picture

I congratulate the Jews. They Win.

Tue, 02/14/2012 - 04:25 | 2156713 Michael
Michael's picture

If they would just change the word "Chemtrails" to "Chemical Trails", I'd bet they'd win their argument over night.

Tue, 02/14/2012 - 05:08 | 2156733 Michael
Michael's picture

Why doesn't anybody make an epic motion picture of the Dot-Com bubble bust?

Tue, 02/14/2012 - 06:53 | 2156771 Uber Vandal
Uber Vandal's picture

Why watch a movie when we can sit back and watch AAPL, NFLX, RIMM, GRPN, GOOG, PCLN and so many others discover gravity once again in real time as we sit back in disbelief as they head into orbit.

And, we can also watch the mother of all IPO's go STS-51-L with FaceBook (FB).

Only commodities and barbaric relics are in a bubble you know.



Tue, 02/14/2012 - 08:10 | 2156821 ebworthen
ebworthen's picture

Banksters - "Masters of the Universe"?  That would be He-Man or Skeletor, depending upon which one you ask.

(although 85 Broad Street could be Castle Grayskull)

Tue, 02/14/2012 - 08:25 | 2156841 Taint Boil
Taint Boil's picture



Bank of Japan Sprays World With Surprising ¥10 Trillion Gift In Valentine's Day Liquidity

Valentine’s Day, Spray, Liquid, Japan ……. There is a joke in there somewhere.

Tue, 02/14/2012 - 08:46 | 2156861 death_to_fed_tyranny
death_to_fed_tyranny's picture

Fiat Bukkake

Tue, 02/14/2012 - 02:04 | 2156550 TruthInSunshine
TruthInSunshine's picture

A reader's comments in response to a New York Times article on the situation in Greece (and soon to be the rest of PIIGS+France+U.K.) is purely epic, and I just wanted to share - but let me preface this by saying I'm very much Austrian School, and this reader's comments at least strongly suggest he may be not so inclined; so how incredible is it that he and I have arrived at exactly the same sentiments (with the exception of his 2nd sentence - see my comments after his indented quote in regards to this) on the whos [central fractional reserve bankster parasites] and the whats [enslaving nations] being done, and the instrumentality [debt] being used?:

Bill Appledorf

Accumulation by appropriation. Capitalism in its most primitive form: theft.

Like the Europeans appropriated the assets of the American Indians. Like colonial powers do to indigenous people everywhere: steal the land, steal the resources, price out or kick out the people who are living there.


Debt is war by other means; keep rolling it over until a country can no longer pay it, then the country is yours. Indoctrinate the rubes into blaming the victim, and you'll be able to do it here. All those houses stolen by the banks; AND the banks got $700 billion in taxpayers' cash plus 14 trillion or so in zero-interest loans.


Looting economies without having to drop a single bomb. Enslave a global workforce to boot. Sweet.


So, I agree with Bill Appledorf with the exception of his 2nd sentence.

Capitalism in its most primitive form, however, would not allow global fractional reserve banking syndicates to link up with wannabe monopolilistic or ogilopolistic businesses - only being able to do so through the Deep Capture of alleged 'elected' politicians/legislators and the so-called 'regulators' that they appoint, aka Crony Capitalism.

But capitalism is dwindling. It survives only in the beating hearts of those businesses still functioning and not on the teet of taxpayer dollars provided by Deeply Captured politicians and regulators, with the former folding by the day (especially in the form of what used to be the main driver of economic growth: small businesses).

He is absolutely correct that debt is being used to enslave nations and appropriate wealth of of those not in the Crony Class.

Tue, 02/14/2012 - 02:14 | 2156590 resurger
resurger's picture

Plus One...

Tue, 02/14/2012 - 03:53 | 2156683 Rogue Trooper
Rogue Trooper's picture

Appledork sounds a tad like those from TAE.  A degree of facts that the reader can associate with to create credibility, but alignment, IMHO with an underlying 'marxism'.

"If only we planned or regulated better we could create a fairer and more just world" sounding like the "Alliance" from Serenity now LOL!

Anyway, f*ck all those "Chardonnay Socialist" and their f*ckin' banker funding bretheren....

Cool post FED.


Tue, 02/14/2012 - 01:54 | 2156554 SHEEPFUKKER

BOJ nuclear option. 

Tue, 02/14/2012 - 02:01 | 2156573 StormShadow
StormShadow's picture

BOJ sprays world with money, eh?

Is that "fiat bukkake"?

Tue, 02/14/2012 - 02:30 | 2156606 ACP
ACP's picture

A veritable bukkake of stock market hopes and dreams!

Ah, who will be next to spread their monetary joy juice throughout the world!?

Tue, 02/14/2012 - 04:23 | 2156712 HedgeAccordingly
HedgeAccordingly's picture

interesting -

Tue, 02/14/2012 - 10:20 | 2157130 Jeremy Roenick
Jeremy Roenick's picture

"Bank of Japan SPRAYS World with Surprising 10 Trillion Yen Gift in Valentine's Day Liquidity"


Japanese Golden Shower

Tue, 02/14/2012 - 01:34 | 2156514 falun bong
falun bong's picture

i ruv you

Tue, 02/14/2012 - 01:34 | 2156515 trebuchet
trebuchet's picture

Holy F*******K 


that shifts money flows big time, carry trade full on

Tue, 02/14/2012 - 01:51 | 2156545 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

London better have some plan to stop gold from spiking.  I bet they do.  I bet they flood the oceans with paper gold.  Paper gold for all, bitchez!  Paper gold for all!!!

Tue, 02/14/2012 - 01:53 | 2156552 Matt
Matt's picture

Huge surge in paper-backed gold ETFs, for sure. Followed by margin hike at what, $1900? Double the size of the the most recent margin decrease, perhaps?

Tue, 02/14/2012 - 01:57 | 2156561 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The only thing the PTB have going is that the status quo is still to live and die trying to get that paypa.

Tue, 02/14/2012 - 04:02 | 2156695 Rogue Trooper
Rogue Trooper's picture

Please, PLEASE, let this be so....

I could then contemplate replacing what I lost in the boating accident and start again re-building what Granma left to me! On the other hand, that 60" LED, 3D, Social Media enabled TV, with no down and 5 years to pay, interest free, is pretty darn tempting (?)

Tue, 02/14/2012 - 06:26 | 2156758 ForTheWorld
ForTheWorld's picture

I'm sorry for your loss. I too know of the pain of lost items via a boating accident.

Tue, 02/14/2012 - 01:34 | 2156516 Pete15
Pete15's picture

And the next chapter of Currency Wars continues 

Tue, 02/14/2012 - 01:41 | 2156523 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's the last chapter, hombre.  The story ends in hyperinflation.  Someone light a match, I dare ya.

Tue, 02/14/2012 - 09:55 | 2157041 unrulian
unrulian's picture

yea your matches...this book is infinite...futures up today, surprise, surprise... what a fucking joke

Tue, 02/14/2012 - 01:40 | 2156521 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I was wondering about that spike.  How long will it last?  Two trading sessions?  Way to go Shirakawa, you fucking idiot.

Tue, 02/14/2012 - 01:43 | 2156528 trebuchet
trebuchet's picture

I think that post lunch nikkei spike timed with the greek midnight vote, this one is NOT priced in.



Tue, 02/14/2012 - 01:47 | 2156535 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

At this point the only thing not priced in is the AAPL.

Tue, 02/14/2012 - 01:42 | 2156524 YesWeKahn
YesWeKahn's picture

central bank buying equilties? wow.

Tue, 02/14/2012 - 01:50 | 2156541 chump666
chump666's picture

BoJ are experts at it. 

Tue, 02/14/2012 - 08:44 | 2156858 jcaz
jcaz's picture

Yep- screwing with currencies worked out SO well for Japan circa 1940........

Tue, 02/14/2012 - 02:23 | 2156597 resurger
resurger's picture

Iceland Bitchez

 long story short, It got fucked because of Government intervention, they said they they are ready to bail out the economy! They were heavly involved in carry trade and which created foreign currency mismatch (banks issued short-term liabilities in order to invest in long-term assets)

in 2007, after ten years of growth, the big three Icelandic banks, Kaupthing, Glitnir, and Landsbanki, owned assets in excess of 1100 percent of Iceland's GDP

Then Kratos came from Greece... reminds me of some graphix tyler posted a day ago..

Tue, 02/14/2012 - 01:44 | 2156530 Floordawg
Floordawg's picture

Ara! Onara suru tsu-mori datta keh-do, un-chi ga de-chatta.

Tue, 02/14/2012 - 03:46 | 2156678 vh070
vh070's picture

Shift the comma by one syllable to yield blood.

Ara!  Onara suru tsumori datta kedo un, chi ga dechatta.

(I intended to fart but Xshityeah, blood emerged.)



Tue, 02/14/2012 - 01:46 | 2156533 jonjon831983
jonjon831983's picture

A spray in face like certain Japanese movies.


Juvenile.  Sorry. I couldn't resist.

Tue, 02/14/2012 - 01:50 | 2156538 jonjon831983
jonjon831983's picture

I guess this type of spraying activity encourages people to try smuggling gold into Japan in any possible way.

Tue, 02/14/2012 - 06:53 | 2156770 LasVegasDave
LasVegasDave's picture

Bukake Bitchezzz!!!!

Tue, 02/14/2012 - 01:49 | 2156537 trebuchet
trebuchet's picture

also, 2% inflation target?? coordinated central bank inflation targetting, is a significant shift in Japanese monetary policy, suggests more YenQE on the way..... 

Tue, 02/14/2012 - 01:49 | 2156540 chump666
chump666's picture

...and Asia gets downgraded next, more so Japan.

anyways that is bearish for the market was in April and August 2011.  Major USD meltups and Asia follows, stocks sell. 

central banks are now governing bodies that do what they want at will.  they are sending us towards the iceberg at warp speed

Tue, 02/14/2012 - 01:54 | 2156553 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Funny how everyone ignores Japan.  It's like Japan is the weird guy you work with that everyone jokes about how if he was fired he would go to work the next day firing a semi screaming this and that about respect.

Tue, 02/14/2012 - 02:12 | 2156587 chump666
chump666's picture


Tue, 02/14/2012 - 02:12 | 2156588 falun bong
falun bong's picture

the one they really ignore is South America. I hear there's a whole continent down there...with a bunch of countries and shit

Tue, 02/14/2012 - 02:23 | 2156602 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Not 265% in debt to gdp though.  Instead they farm and fish and have fresh water.

Tue, 02/14/2012 - 04:04 | 2156696 Uncle Remus
Uncle Remus's picture


Tue, 02/14/2012 - 01:54 | 2156556 trebuchet
trebuchet's picture

this lowers chance of Japanese downgrade - Japan could inflate its way out of debt since so much is held domestically

and i dont see the japanese rioting on the streets due to wealth erosion



Tue, 02/14/2012 - 02:10 | 2156583 chump666
chump666's picture

Like the US? Please...

In fact I am betting Japan gets looked upon very soon by a rating agency.  See, they are stuck with the Obama disease, he needs to keep spending and raising debt.  Problem is the value of bonds are sh*t.  The US is junk right now and S&P will fire another shot this year.  Bank on it.

Back to Japan.  There is no revenue coming in, trade deficit that would make your eyes bleed that and Japan (like China) are net importers of energy = trade deficit forever and ever = a junk rating very soon.

And inflation will eat the rest of the economy up.  Maybe, just maybe they become warriors again and chop off some well deserved heads.  

Fingers crossed.  

Tue, 02/14/2012 - 02:28 | 2156605 trebuchet
trebuchet's picture

I have the same overall outlook re Japan, the YenQE improves its outlook, doesnt fix it

Tue, 02/14/2012 - 03:21 | 2156642 resurger
resurger's picture

hey chump!

i need those heads for tsanta (head shrinking) in Ecuador


Tue, 02/14/2012 - 07:46 | 2156803 youngman
youngman's picture

I can not figure out why the Yen is "strong" seems to me with all of Japans should not be.....but what do I know about today econ 101 does not work anymore in a world of Central bankers

Tue, 02/14/2012 - 01:51 | 2156542 Bansters-in-my-...
Bansters-in-my- feces's picture

Gold is so manipulated it makes me puke. Fuck You's PPT.

Tue, 02/14/2012 - 01:55 | 2156558 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

London controls the POG.

Tue, 02/14/2012 - 02:07 | 2156580 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Tue, 02/14/2012 - 02:26 | 2156604 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

LBMA controls the POG

Who the fuck do you think owns Barclays ishares/GLD/SLV???

The Rotheschildes

Tue, 02/14/2012 - 03:22 | 2156643 respect the cock
respect the cock's picture

Have you been drinking tonight?

Tue, 02/14/2012 - 06:47 | 2156767 Awakened Sheeple
Awakened Sheeple's picture

With the BoJ and ZH spraying so much junk tonight I didn't want to feel left out :/

Tue, 02/14/2012 - 02:23 | 2156600 Central Bankster
Central Bankster's picture

Why the fuck would you want the price to go up?  You can accumulate more if they keep it low.  *head explode*

Tue, 02/14/2012 - 02:02 | 2156564 tahoebumsmith
tahoebumsmith's picture

Stop!!! You can't be talking about the same Japan that has already lost 12 solid years in the game of kick the can? I guess we will call it a Whitney Houston, when you're soo far in why not go all the way? WTF, honestly, please Krugman, Summers and all the rest of you losers tell me how this will play out for my 12 year old son who gets straight A's and participates in all the local functions thinking he is making a difference? The NWO has no time for kids like my son and when they decide to pull the plug it will be like TFB for him... All I go to say is watch your back bitchez, the clock is ticking ...tick,tock,tick,tock,tick,tock, can you hear it yet?

Tue, 02/14/2012 - 03:00 | 2156627 resurger
resurger's picture

Great Read! but please dont use Kick the "CAN"

Because it's no longer a fucking CAN!

Tue, 02/14/2012 - 08:01 | 2156814 Ceteris paribus
Ceteris paribus's picture

Is that the sound of AmeriCANs running out into the street to stop the bankers, Of course not its the sound of a banker kicking a can down the road.

Tue, 02/14/2012 - 09:03 | 2156888 j0nx
j0nx's picture

No, that's the sound of Americans jumping up and down watching their team win the superbowl. Americans only give a shit about sports, reality tv and beer. Oh and gay marriage. They could care less about anything else in large numbers. The 1/10th of  the 1% gotta be laughing their asses off at us. What a joke we are.

Tue, 02/14/2012 - 02:01 | 2156567 non_anon
non_anon's picture

better than a face full of jizz!


... or is it?

Tue, 02/14/2012 - 04:46 | 2156571 BlackholeDivestment
BlackholeDivestment's picture

...what? them thar Shinto ''gods of Loyd'' need more human sacrifice? Well, were all due for another ''Title Wave'' kick in the Fannie. Lol. ...and the Whore of Babylon has another drink of wrath.

Golden Japanese Nix Nix Nix San say ''Sake to me'' 

Well, it seems that when the BoJ made the call it was followed by a 6.0 shallow quake 80 miles from the Fukushima meltdown.

Man, a 5.8 in Costa Rica, 5.6 in California, 6.0 in Fukushima and 6.5 in Solomon Islands.

Tue, 02/14/2012 - 02:03 | 2156574 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

All this does is increase volatility.  Thats al it does.  The upsides and downsides will get greater until the Fiat Ponzi Tsunami is a wash.

Tue, 02/14/2012 - 02:16 | 2156592 trebuchet
trebuchet's picture

thatd the implicit guarantee of the inflation target.

They wont flood the market with fiat forever, the flow will reverse once people finally buy back into rising asset prices, house prices, wages and the happily ever after feeling.

tsunami fiat flow is not on the agenda. it just looks like it now coz private sector and bank deleveraging is on such a roll. 

Tue, 02/14/2012 - 02:33 | 2156611 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Nobody will be buying fucking houses.  Guess what happens next month?  The housing market gets flooded with all the people that thought they would wait out the "dip" in housing.  And as the banks flood the markets with foreclosures!  Setting up QE mother fucking 18 (or whatever the fuck number we are on).

They won't flood the market with fiat forever.  How long is forever?  Forever-ever?  Forever-ever???  What if forever already came and went?  What if this is us dead and remembering life before a catastrphic event?  How dense can you be not to question this world and its reality?  Butterflys and teacups, sure, all of it. 

Tue, 02/14/2012 - 02:55 | 2156623 trebuchet
trebuchet's picture

which housing market you talking about, Japanese?

look at the BOJ asset purchase sheet -  REITs

Also if you think fiat doesnt reverse, WTF happened in weimar republic? 

And look at Q4 Fed balance sheet pre EUpocalypse... they had started to shrink it. 

Of course that announcement is not made, for obvious reasons

Look at ECB, tightened in H1 2011.... despite its SMP. 


If you think fiat ponzi is crashing, sorry mate its here to stay. 

You know why? for the same reason that you are worried about hyperinflation and the collapse of the ponzi, coz the govts control the presses. 


They turn them on and they turn them OFF. and when things get out of control on rare occassions, they PRINT a WHOLE NEW FIAT. simplez.




Tue, 02/14/2012 - 03:37 | 2156651 Bringin It
Bringin It's picture

Well trebu, you make a good point.  Many people thought the Ponzi was gonna cough up a lung in the late 70's, but thru some happy circumstance for the Ponzi Drivers, [North Sea/North Slope coming on line, largest creditor then, largest debtor now] Volker was able to pull out of the dive and get the Ponzi climbing again.  I don't see the magic bullet arriving this time.  The math dosen't support belief in magic salvation this time around for the Ponzi.  If you look at this in terms of your life time, then yes, they've always been able to come up with, if not a stick-save, a sledge hammer, to get the Ponzi working again in times of Ponzi-crisis.  But if you take a broader, historical perspective, the Ponzi always goes belly up.

If the crash is significant enough, people will, at first be reluctant to re-ignite a Ponzi.  We may have a period of Neo-Enlightenment for decades ... before people forget, before none are left alive who remember

Tue, 02/14/2012 - 03:59 | 2156690 roccman
roccman's picture

can't print oil


peak oil's what's for dinner

Tue, 02/14/2012 - 04:04 | 2156697 lasvegaspersona
lasvegaspersona's picture

LH... they WILL flood the market forever, fundemental misunderstanding on your a fiat world that is what they do....and as for the POG   it WILL be the death of the market and not just "more buyers of paper gold than sellers of paper gold" that will bring in the new realization of gold's worth.  The paper market can satisfy the needs of those who seek paper gold just as long as there is still paper....(longer actually...those who can be satisfied with 'ownership' short of actual possesion can be made happy with electrons.)

Tue, 02/14/2012 - 02:06 | 2156577 barliman
barliman's picture


Somewhat disappointing ...

I had hoped BoJ would put a peg of 85 in place.

Perhaps they are saving that for March 11th?

That would be ironic and cold blooded at the same time - In memory of those who have and will die as a result of our national tragedy, please be silent while we firebomb the currency markets.


Tue, 02/14/2012 - 02:08 | 2156581 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Japan can't hold a currencie peg, are you serious?

Tue, 02/14/2012 - 02:44 | 2156616 barliman
barliman's picture



While I understand the technical merits of your statement  ... please approach my statement from a philosophical and cultural frame of reference. If the BoJ pegged the yen at 85.00/USD ...

... how would you describe their action in terms of their culture and using philosophical terms rather than financial?

Please note my reference to March 11th re: earthquake, tsunami & Fukushima; and then look forward into Japan's future if they continue on the same path they have been on, where they accept limitations and the certainty of future calamities and degradations.


P.S. See sizzurp's post below.

Tue, 02/14/2012 - 02:11 | 2156585 trebuchet
trebuchet's picture

could be USD/JPY up coz of carry trade implications, since gold priced in $ gold going up too, for rest of world..... hence no immediate $AU spike.




Tue, 02/14/2012 - 02:12 | 2156586 mimsy
mimsy's picture

Hyperinflate all the things!


Tue, 02/14/2012 - 05:06 | 2156730 StychoKiller
StychoKiller's picture

The time of the snack is happy!

Tue, 02/14/2012 - 02:30 | 2156608 Sizzurp
Sizzurp's picture

The Japanese have been busy creating a debt tower, and it looks like it just got bigger.  I wonder how long before their currency goes into spontaneous combustion.  We are about to get a first hand look at the end result of QE to infinity with Japan as the test case.  Once the Yen gets bagged our own future will be unmasked, and it may launch an accelerated cascade out of all things paper.  I think Kyle Bass is right.  A sovereign debt crisis in Japan may be ultimate financial catatrophe that brings the whole fiat house crumbling down.  

Tue, 02/14/2012 - 02:35 | 2156614 trebuchet
trebuchet's picture

Japanese sovereign debt = japanase pension funds, YenQE just devalues the overall burden while paying fixed income in the future, helps to sort that problem out too...........

they need growth = exports = lower yen, yenqe good for that too

Tue, 02/14/2012 - 02:48 | 2156619 Ungaro
Ungaro's picture

What is "surprising" about Japan being up on the roster of competitively devaluing nations?

What really burns my assets is that there seems to be no end to the weapons of mass distraction TPTB fires at the zombified masses. If it isn't contraception then it is some other BS. Not that the masses need much help in being distracted: poor Whitney Houston, Grammies, American Idol, Olympics this summer, whatever.

Meanwhile, the sovereignty of nations, including our very own, is being handed over to supernational, unelected organizations (UN, WB, IMF, etc.) or private, foreign-owned multinational corporations (e.g.: the Fed).

Our political parties are differently colored cartels of private interests with a specific agenda. Might as well call them the Democratic zaibatsu and the Republican zaibatsu. Is it any wonder that our federal .gov runs at the beck and call of the same interests?

Meanwhile, our states, counties and cities are sinking in debt. Our social systems (educational, justice, healthcare, finance and so on) are in shambles and the population has harsh times to look forward to: higher taxes, crumbling infrastructure and diminishing services. The criminal class of bankster-politicos (the line has blurred between Wall St., K St., and the hallowed halls of Congress and the Executive Branch) gorges itself on stolen gazillions.

We don't really mind -- as long as there is beer in the stores and good shit on TV. Do we?

Tue, 02/14/2012 - 03:14 | 2156637 resurger
resurger's picture

As long as you keep the sheeples Libidos & Stomachs satisfied it's going to be fine!

These days, the brain shits and the dick thinks

Tue, 02/14/2012 - 11:33 | 2157386 Debt-Is-Not-Money
Debt-Is-Not-Money's picture



There's "good shit on TV"?


(If I turn on CNBC my little Lab puppy immediately goes to sleep! Smart dog)

Tue, 02/14/2012 - 02:54 | 2156622 HD
HD's picture

You know - I'm getting to the point where I'm just going to take my ball and go home.

Tue, 02/14/2012 - 03:05 | 2156631 HD
HD's picture

When do the markets choke on all this liquidity? The Fed, ECB, BOJ (who am I missing) are flooding the markets - yet no real recovery is even close.  The idea that the Fed can now keep inflation from spiraling up and hold off the bond vigilantes is laughable.



Tue, 02/14/2012 - 03:16 | 2156639 resurger
resurger's picture

It's a fucking JOKE! Am glad that i lived thus far to see this ponzi

Tue, 02/14/2012 - 03:33 | 2156650 nathan1234
nathan1234's picture

The only recovery they are referring to and hoping for is the recovery of the banks.



Tue, 02/14/2012 - 11:28 | 2157371 Rampage
Rampage's picture

BOE as of late, SNB also said "no mas" to the strong franc.  Who won't ?

question is how does inflation happen with no velocity ?

Tue, 02/14/2012 - 03:32 | 2156648 BlackholeDivestment
BlackholeDivestment's picture

...and in other news, for all the gold bugs. Long ago lover, of the wise King Solomon, the Queen of Sheba rises again.

Tue, 02/14/2012 - 03:46 | 2156680 thilligo
thilligo's picture

The Yen is only off fractionally vis a vis the dollar since the BOJ action to print 10 trillion Yen in some more good-old fashion quantitative easing.  After all, it was this wonderful country that invented the term and infected our central banker "Helicopter Ben".  This is insanity.  This tells you that fiat currencies have us all high on something very toxic. It's like arsenic, it can take a while before it kills you, but eventually it WILL kill you.  Maybe the Japanese people (as old as they are) will put an end to accepting JGB coupons for far less than inflation for another 20 years.  I guess the term kamakazis does apply to more than those who flew their planes into Allied carriers during WWII.   It now applies to every Japanese man, woman and child, that invest their hard earned savings into these wealth destroyers.

Tue, 02/14/2012 - 04:06 | 2156699 Uncle Remus
Uncle Remus's picture


Tue, 02/14/2012 - 04:53 | 2156726 BlackVoid
BlackVoid's picture

10 trillion yen is nothing. No wonder it has no effect.

Tue, 02/14/2012 - 06:32 | 2156760 Kiwi Pete
Kiwi Pete's picture

Isn't it about $130bil? Ad that to the GBP50bil the Bank of England just created and you're starting to talk real money. Plus add the $130bil that Greece will be getting. Is that QE also?

Tue, 02/14/2012 - 05:13 | 2156735 Negro Primero
Negro Primero's picture

Magnitude 6.0 - NEAR THE EAST COAST OF HONSHU, JAPAN 2012 February 14 06:21:58 UTC

Tue, 02/14/2012 - 05:44 | 2156742 blabam
blabam's picture

Got silver?

Tue, 02/14/2012 - 05:49 | 2156746 Hobbleknee
Hobbleknee's picture

Bukake, bitchez!

Tue, 02/14/2012 - 11:12 | 2157325 Rampage
Rampage's picture

I posted "Bukake Bucks"  this AM.  Strong work.

Get out your golden yellow raincoats, eh bitchez ?  

Tue, 02/14/2012 - 06:33 | 2156761 Zgangsta
Zgangsta's picture

At about 1:47 in.  The masses are catching on!!

Tue, 02/14/2012 - 08:48 | 2156862 web bot
web bot's picture

This is hilarious... even the trailer park crowd is catching on.

Was that Bubbles holding up the sign, or Jim Leahy and Randy?

Tue, 02/14/2012 - 06:42 | 2156763 ugmug
ugmug's picture

Gold is the enema of the world's financial system.......

Tue, 02/14/2012 - 06:49 | 2156768 Quinvarius
Quinvarius's picture

I like the doubtful nature of this article that this will effect gold prices before the big fiat/debt collapse.  It is a thoughtful argument based on what governments have tried in the past, but as soon as people start believeing that, gold will rape them to the upside.  If gold were up 100 on this news, we'd all know why.  But it isn't.  So we doubt the market can ever be real.  The market is real.  And Volcker's habit turned policy of selling US sovereign gold at exactly the time when it should be bought continues to be a boon for real gold holders.

Tue, 02/14/2012 - 07:00 | 2156774 Awakened Sheeple
Awakened Sheeple's picture

Pre Greek default liquidity injection anyone? Time to buy more phyzz..

Tue, 02/14/2012 - 07:05 | 2156775 arsenal009
arsenal009's picture

"What is ironic is the market reaction: the BOJ expands its LSAP by 18% and the USDJPY moves by 30 pips. As for gold, not a peep"


What does LSAP stand for?

Fri, 02/17/2012 - 14:51 | 2170724 Death and Gravity
Death and Gravity's picture

Large Scale Asset Purchases. aka "propping up the failing establishment"

Tue, 02/14/2012 - 07:07 | 2156776 Scalaris
Scalaris's picture

Monetary expansion is the devil's work.



- The Jesus, CFA / OBE

Tue, 02/14/2012 - 07:45 | 2156801 SmoothCoolSmoke
SmoothCoolSmoke's picture

"Something" jacked up the Euro all night long.  BOJ move?   Bernake?  Anyway......Moody's DGs have been "washed away" overnight.


Tue, 02/14/2012 - 08:01 | 2156807 ebworthen
ebworthen's picture

Throwing water on a grease fire.

Tue, 02/14/2012 - 07:56 | 2156808 youngman
youngman's picture

Yes the gold play has been very quiet.....almost too quiet....Every bit of new fiat I see as a reson to buy more gold...I think other people feel the same way...all over the world..we are watching this print until you die happen before our eyes..and we all know the we are buying PM´s....I bet Buffett is too...Soros have too...add in the Russians, Chinese, anyone of the western worlds enemies, even small up and comers like Colombia are buying gold.....but it has been flat for an awful long time in such a time of worry...200 billion for Greece last week and not a move...159 billion for Japan...nada...the USA announces another 1.3 trillion dollar deficit.....flat as pancake......hmmmmm

Tue, 02/14/2012 - 07:57 | 2156810 MFL8240
MFL8240's picture

The stopping point will be hyperinflation after the world crime ring reelects the Muslim.

Tue, 02/14/2012 - 09:16 | 2156920 j0nx
j0nx's picture

Would someone PLEASE explain to me how we can ever get hyperinflation in an environment of extraordinary global wage arbitrage and cratering asset values? What is the mechanism for passing that inflation on to wages and driving up asset values? Answer: there is none. Hyperstag/biflation I will give you. Hyperinflation fughet about it.

Fri, 02/17/2012 - 14:53 | 2170736 Death and Gravity
Death and Gravity's picture

Different measures of inflation; the Establishment and its hired eGunomists use "goods baskets" (sans the annoying outliers) as measure of inflation. People who have more insight use money supply stats.

Tue, 02/14/2012 - 08:00 | 2156813 SDRII
SDRII's picture

What is curious is the degree to which treasury has ben vocal about NOT supporting yen intervention.


Few days ago Japan called for a work around of the dollar in Asia.(Bloomberg)


Then there was the fx agreement.


Japan drifting out of US orbit...

Tue, 02/14/2012 - 08:10 | 2156825 I am Jobe
I am Jobe's picture

Whoo Hoo- Does this mean Susi's are going to be taxed a VAT.
Amazing fucking idiots all around. World gone nuts and sheeples watching Grammy's and mourning Drug queen Houston's funeral crap.

Tue, 02/14/2012 - 08:18 | 2156833 SmoothCoolSmoke
SmoothCoolSmoke's picture

TPTB bumped off Houston; needed a diversion.  No?

Tue, 02/14/2012 - 08:26 | 2156842 Bow Tie
Bow Tie's picture

helicopto cashoo dropoooooo!

Tue, 02/14/2012 - 08:48 | 2156863 dr.charlemagne
dr.charlemagne's picture

one of my very favorite ZH headlines

Tue, 02/14/2012 - 08:50 | 2156869 Miss Expectations
Miss Expectations's picture

If you're an earthquake watcher, watch this 2011 Earthquakes plotted and animated (with sound).  Japan in March will make you jump.

(A global liquidity animation plotted with sound would be interesting, too)

Tue, 02/14/2012 - 09:02 | 2156887 JoeStocks
JoeStocks's picture

Ellen Brown wrote in her book 'Web of Debt' of a similar move by Japan in 2003 to "help" the "US" markets. Remember 2003? The market climbed most the year with very little volatility.



Tue, 02/14/2012 - 10:59 | 2157287 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Create liquidity and devalue the Japanese currency to stimulate exports.


"Kill two birds with one stone."

Tue, 02/14/2012 - 11:05 | 2157306 Rampage
Rampage's picture

Bukkake Bucks, Bitchez !

Do NOT follow this link or you will be banned from the site!