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Bank Of Japan Increases Asset Purchases By Y10 Trillion, Total Program Now Y80 Trillion, Total Debt Still Y1 Quadrillion

Tyler Durden's picture




 

It seems like only yesterday that we were lamenting "Einstein rolling over in his grave" as a result of the BOJ's latest increase in its asset purchase program from Y65 to Y70 trillion, although technically it was 5 months ago on April 27. We would excuse Einstein if he were doing cartwheels in his grave right about now, following the BOJ's latest attempt to keep doing what has definitvely failed for 30 years, hoping this time it will be different, as a result of the just announced latest expansion in the asset purchase program's size by yet another Y10 trillion, this time to a total of Y80 trillion. The expansion impacts only JGBs and T-Bills, both of which will be monetized by a further Y5 trillion. Putting this in perspective, Japan's total public debt is Y1 quadrillion, and counting very fast. All other components of the Japanese LSAP program, including CP, Corporate Bonds, ETFs and REITs (yes, unlike the Fed, the BOJ is quite open about its equity and corporate bond purchases) remain the same. Bottom line, just as we predicted back in July 2009, the global race to debase continues unabated, and as a result of QEternity will merely accelerate until the only true currency is gold tungsten.

Full BOJ statement, which will be as meaningless as all the others preceding it:

 

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Wed, 09/19/2012 - 00:02 | 2809801 vinayjha
vinayjha's picture

I wished i had such printing press. Atleast i didnt have to go for work. 

http://www.freefdawatchlist.com/

Wed, 09/19/2012 - 00:19 | 2809838 CClarity
CClarity's picture

First to tighten wins.  The race for easing is over.

Wed, 09/19/2012 - 02:23 | 2809980 Silver Bug
Silver Bug's picture

The Money printing goes on. Let's start the full blown currency wars.

 

http://ericsprott.blogspot.ca/

Wed, 09/19/2012 - 06:49 | 2810198 new game
new game's picture

patience on an extreme level. unshakable faith in your knowledge that gold and silver WILL prevail

as a store of value.  simple as it gets....

all else is mind game to get you to weaken to convert back to fiat.

they will try everything to maintain their control, even outlawing and taking.

done it before. that will be an outright admission of there own failure.

hopefully like guns, enough people will own them and see the threat...

Wed, 09/19/2012 - 00:03 | 2809802 The Shootist
The Shootist's picture

Make it rain the Benjamin Shaloms, bitchez!

Wed, 09/19/2012 - 00:10 | 2809803 vast-dom
vast-dom's picture

 

hey ty let's get some coverage for BIT COIN

 

http://www.youtube.com/watch?v=OtN9YUvh_XM

intro to bitcoin:

 

http://www.youtube.com/watch?v=ejiqbzqmxSE&feature=related

 

this is how you bypass the fed and boj et. al.

 

cryptocurrencies

 

https://www.coindl.com

http://www.bitmit.net

 

Wed, 09/19/2012 - 00:21 | 2809845 tekhneek
tekhneek's picture

And then the power goes out.

Truth be told I guess it's not all that different from our current banking system though...

Wed, 09/19/2012 - 03:09 | 2810008 jamezelle
jamezelle's picture

Right?! digital fiat.

Wed, 09/19/2012 - 04:55 | 2810106 Popo
Popo's picture

Ugh... Tyler -- Can we stick a fork in this idiotic old-saw that is Einstein's supposed "definition of insanity"?  Are we supposed to believe that Einstein didn't understand rare-events, limits, tipping points or randomness?   You know, he was pretty good at math.  I'm sorry, but never in a million years would have suggested that repeated action could not yield different results.   According to YOUR definition of insanity,  a man tossing a coin 5 times and getting heads should stop flipping and expect heads forever or else be "insane".   Or a man filling a container with water and seeing no spillage should comfortably pour 1000 more times because the result "must" always be the identical.

Yes, what the Fed is doing is idiotic.   But that's because the plotted vector of their performance is heading *away* from the intended target, and the effects are damaging us and will eventually destroy us.   NOT because of some idiotic legend that Einstein believed repeated action and repeated result must forever be constant.   This has to be the most misquoted Einstein-ism of all.

My personal definition of insanity is about to become: Repeatedly quoting something Einstein supposedly said and never actually applying basic logic or mathematics to what's coming out of your mouth.

 

 

Wed, 09/19/2012 - 05:04 | 2810127 WAMO556
WAMO556's picture

I am all for what this guy said. He sounds really smart, and I need somene to help me with my homework.

Wed, 09/19/2012 - 07:25 | 2810243 LongSoupLine
LongSoupLine's picture

ok, I just spit out my coffee...

Wed, 09/19/2012 - 08:58 | 2810516 francis_sawyer
francis_sawyer's picture

Just use "the dog ate my homework" line... It usually works (&/or guarantees you a life in politics)...

Wed, 09/19/2012 - 08:51 | 2810430 TwoShortPlanks
TwoShortPlanks's picture

Einstein wasn't good at Math at all. He believed that the universe should be simple in its' understanding...mathematically. He used Ab Diff Calc created by Ricci-Curbastro and Levi-Civita, then he was assisted by Hilbert for the Field Eq's to put his theory of General Relativity together...and he still had a nervous breakdown or two. Einstein didn't even come up with the Principle of Relativity either...Einstein was a Genius tho, but for other reasons, certainly not Math.

A true Math genius would be mathematicians like Bernhard Riemann.

That being said, I think a much better example of insanity would be that of the use of slippery trickery sleigh-of-hand 'Renormalization' processes to observed particle events in order to predict outcomes which have already occurred...and then to claim an understanding of said event...Now that's just fucking NUTS!

Central Banks use a form of Renormalization on currencies; to attain desired economic outcomes through slippery trickery inputs after stating bogus data...until it doesn't work...enter the Bernank with QE*n.

Wed, 09/19/2012 - 10:34 | 2810956 TheCanadianAustrian
TheCanadianAustrian's picture

Agreed 100%. The fake Einstein quote is my #1 peeve, and attributing it to him is far more annoying than any misspelled word or misused phrase.

Wed, 09/19/2012 - 00:52 | 2809903 q99x2
q99x2's picture

Bulldoze the entire financial system. Get that sucker outta here and go with bitcoin. The financial system would have developed like the Internet if it wasn't for crimminal terrorist banksters.

Wed, 09/19/2012 - 00:58 | 2809910 vast-dom
vast-dom's picture

some here clearly aren't appreciating P2P cryptocurrency as the future.

Wed, 09/19/2012 - 03:04 | 2810002 jamezelle
jamezelle's picture

backed by nothing.

Wed, 09/19/2012 - 04:57 | 2810117 jmcadg
jmcadg's picture

What happens if we get a surge that takes down the digital system?

Genuine question, not taking the piss.

I prefer hard assets.

Wed, 09/19/2012 - 06:58 | 2810206 malikai
malikai's picture

+1 for a valid, honest question.

For store of wealth, hard assets are tier 1.

For trade and foreign exchange, BTC is an excellent facilitator.

If the lights go out, you and I have much bigger problems to worry about than the money we once thought we had. Government fiat or BTC.

Wed, 09/19/2012 - 05:01 | 2810123 WAMO556
WAMO556's picture

Dude,

Your talking about Astral Projection dollars and Ethereal coins. Binary code that says, "het, I got money" when in reality all it s just some code on a server. The difference between what the Fed does in money creation and your Bitcoin is what?

Wed, 09/19/2012 - 08:38 | 2810439 orangegeek
orangegeek's picture

Be sure and put your name out there as a supporter of bitcoin so when the government drones fly overhead and lauch a couple of missiles through your front window, they hit you and not your neighbours.

 

 

Wed, 09/19/2012 - 00:15 | 2809826 lolmao500
lolmao500's picture

Time for Ben to print moar!

Wed, 09/19/2012 - 00:21 | 2809846 LMAOLORI
LMAOLORI's picture

 

 

Ben's printing is the problem

Dollar Index Headed for Rapid Collapse: Chart

snip

Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies. (more at link)

Giant Ponzi

Japan, the second-largest holder of U.S. debt, upped its holdings by $7 billion to $1.12 trillion in July. Unlike China, Japan has added some $59 billion worth of U.S. securities to its holdings since the star to the year.

Wed, 09/19/2012 - 00:17 | 2809829 chump666
chump666's picture

That is it.  Japan will be junked and down graded into oblivion.  Either the Chinese do it and bond vigilante Japan, or rating agency, no doubt there at all.  Inflation, which is most likely already  there on oil/fuel hikes etc.  So, no one on the planet will buy Japanese debt, the Chinese will sell, as they don't want further oil inflation from a now out of control printing madness by the central banks of the world.

And...this moves us very close to war.  Which will be Japan and China, any-day now.

Wed, 09/19/2012 - 00:41 | 2809884 chump666
chump666's picture

I hope not.

But I think central banks, in a blind panic, are front running for war.

Wed, 09/19/2012 - 06:58 | 2810207 new game
new game's picture

markets and natural laws will prevail-draw your own conclusions-even with human manipulation the end result will be a given...

Wed, 09/19/2012 - 04:02 | 2810067 DosZap
DosZap's picture

And...this moves us very close to war. Which will be Japan and China, any-day now.

 

What is Japan going to fight China with?, Sushi.

Japan keeps poking the Dragon,and the entire country will become a Chinese resort.

Wed, 09/19/2012 - 06:17 | 2810171 johny2
johny2's picture

The Dragon seems to never wake up, if you consider that it was previously rumbled by the two small island based countries. And the Dragon invented gunpowder too. 

Wed, 09/19/2012 - 06:47 | 2810192 KickIce
KickIce's picture

Radioactive Sushi.

Wed, 09/19/2012 - 06:15 | 2810170 Go Tribe
Go Tribe's picture

Bonds away!

Wed, 09/19/2012 - 00:23 | 2809832 Mine Is Bigger
Mine Is Bigger's picture

Glorious!!!

Up Y10 trillion .... aaaaand it's gone, bitchez!!!!

Wed, 09/19/2012 - 00:17 | 2809833 Alpo for Granny
Alpo for Granny's picture

Ink, Bitchez...

Wed, 09/19/2012 - 08:39 | 2810445 ZeroAvatar
ZeroAvatar's picture

Bits, Bitchez!  (10. Trillion. Of. Them.)

Wed, 09/19/2012 - 00:18 | 2809834 tekhneek
tekhneek's picture

BOE's chompin' at the bit now. 

Hey it could be worse right? At least we know those titty pics are good collateral!

Wed, 09/19/2012 - 00:42 | 2809886 Peter Pan
Peter Pan's picture

Good to see that Mother England is keeping abreast of economic developments. The used to say that the sun will never set on the British Empire but now I wonder if it has even dawned on the British as to how bad things are for their future.

Wed, 09/19/2012 - 00:19 | 2809835 Kreditanstalt
Kreditanstalt's picture

Is THIS why gold came to life...drifting down around $1766...now suddenly $1772...?

Wed, 09/19/2012 - 00:20 | 2809843 sodbuster
sodbuster's picture

increased "asset purchases"..............and how's that working out for them?

Wed, 09/19/2012 - 00:21 | 2809844 Kreditanstalt
Kreditanstalt's picture

As of Tuesday I'm all-in on gold stocks fortunately...I'll have fun fun fun until Bernanke takes the punchbowl away...

Wed, 09/19/2012 - 00:23 | 2809849 Zgangsta
Zgangsta's picture

"In addition to purchases under The Program, the Bank regularly purchases JGBs at the pace of 21.6 trillion yen per year."

So Japan has lead the way in QEinfinity as well.

Wed, 09/19/2012 - 00:25 | 2809851 Peter Pan
Peter Pan's picture

It is said that, “Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."  I wish to add just one more........"fiat is the money of fools."

People need to realise that just because the whole debt/fiat dung heap has not collapsed does not make it stable or valuable. People are just playing slow motion Russian Roulette and when the right chamber is fired things will move very very quickly.

The Japanese government  is relying on people's ignorance and pre-occupation with their daily grind so as to not notice what is happening. This can go on for only so long and then BANG........we will all be saying "I told you so!" but in reality only a small percentage of us would have heeded our own words by preparing.

Wed, 09/19/2012 - 00:44 | 2809891 gwar5
gwar5's picture

You're right. But Japanese are pretty smart and cohesive. I wonder if any are aware, but feel it is their duty to go along and keep quiet. I have a lot of respect for the people. Contrast their dignified behavior post-tsunami vs American's post-Katrina.

Wed, 09/19/2012 - 02:07 | 2809967 Peter Pan
Peter Pan's picture

The Japanese certainly leave many of us westerners for dead in terms of manners and civility. However I don't know whether it's worse having a populace that is obedient to the extent that the Japanese are or whether it is better to have a gun toting, calorie crammed populace like the Americans because they at least might be inclined to put up a fight against a government that becomes tyrannical rather than bowing down and worshipping the president like a god as was the case with the Japanese and Hirohito.

But in reference to Katrina type events, I agree with you, so give me a Jap any day.

Wed, 09/19/2012 - 09:23 | 2810610 shovelhead
shovelhead's picture

Having heard first hand accounts of Japanese civility by a onetime member of the Bataan Hiking Club, I can assure you that this trait is highly exaggerated.

Wed, 09/19/2012 - 03:45 | 2810043 Vlad Tepid
Vlad Tepid's picture

They all know, at least those of working age.  Many are old enough to remember the pre-war inflation that led them to take Manchuria and many remember the inflation postwar that led the yen to go from being worth a dollar to being worth a penny (where it is today).

But as you say, they're a dignified bunch and they will not stampede in any tsunami, water or fiat.  This bodes well for their financial survivablilty as there will be less broke glass to clean up after the whole global system goes down the tubes.

Wed, 09/19/2012 - 07:45 | 2810259 Zero Debt
Zero Debt's picture

Dignity is not a substitute for self respect and courage.

Wed, 09/19/2012 - 00:27 | 2809859 Temporalist
Temporalist's picture

Not to worry Krugman's got all of Japan's woes figured out.

Wed, 09/19/2012 - 00:32 | 2809865 gwar5
gwar5's picture

Wow. It must really suck to be Japanese this week.

 

Wed, 09/19/2012 - 00:33 | 2809868 CvlDobd
CvlDobd's picture

The Vapors!

Wed, 09/19/2012 - 08:27 | 2810396 HellFish
HellFish's picture

I see what you did there.

Wed, 09/19/2012 - 00:41 | 2809878 Yen Cross
Yen Cross's picture

The BoJ can buy some of that "Shit" China is about to unload./sarc   All the worlds central banks should be renamed as regional, "Insane Asylums", as all in "Mental Retardation" , has been unleashed upon us!

Wed, 09/19/2012 - 00:44 | 2809890 chump666
chump666's picture

83.20 top on the AUD/JPY carry trade?  Before the SHTF?

Wed, 09/19/2012 - 00:53 | 2809902 Yen Cross
Yen Cross's picture

It's BTFD Wednesday Chump. /sarc I have 83.57 a/j on 8-21. there is another level 83.05/10 that needs to get popped in Europe first.

 82.60 is the 23.6% retrace on the m-5 chart. (81.778-82.855)

Wed, 09/19/2012 - 00:43 | 2809888 max2205
max2205's picture

Ben is Fisting the markets and Japan has to do this as cover for china dumping their jap holdings.

What a world....

Wed, 09/19/2012 - 01:09 | 2809920 Bernankenstein
Bernankenstein's picture

I call it Stimulus Noninterruptus.

Wed, 09/19/2012 - 00:49 | 2809897 Cosimo de Medici
Cosimo de Medici's picture

Well that takes care of more than half the threat from the Chinese in "Bond Wars".

Gimme ya best shot China.  I'm bidding for size!

Wed, 09/19/2012 - 06:06 | 2810168 youngman
youngman's picture

I bet this is exactly why they increased it...to cover the China sell....on the other hand its been a pretty good week so far for fiat....more , more , and more...do the Japanese buy gold?....I don´t remeber...they like pearls though

Wed, 09/19/2012 - 01:13 | 2809923 AynRandFan
AynRandFan's picture

Japanese national debt of Y1 quadrillion is $12.7 trillion USD's.

Wed, 09/19/2012 - 01:33 | 2809934 Lukacko
Lukacko's picture

Can't wait till they start using fancy exponents when referring to the debt numbers.

Wed, 09/19/2012 - 03:21 | 2810015 Colonel Klink
Colonel Klink's picture

The Emperor's robe is caught on a nail and he's only a step or two away from becoming nekkid.

If China plays the trump card with this whole Japanese rivalry, the negro swan may very well take flight.

Wed, 09/19/2012 - 04:20 | 2810083 AvoidingTaxation
AvoidingTaxation's picture

Long silver, short yen (and everything) is the right way to do it.

Wed, 09/19/2012 - 04:24 | 2810088 intric8
intric8's picture

Ben "Buzz" Bernanke, "To QEternity, and beyond!"

Wed, 09/19/2012 - 04:30 | 2810093 Banksters
Banksters's picture

Assets... Hahahah ...

Wed, 09/19/2012 - 04:40 | 2810102 Sheeple Shepard
Sheeple Shepard's picture

Y1 quadrillion? Do these numbers even mean anything anymore. What's next? 1 jazzilion, 1 frillion, in the U.K we've got 1 Ohshitillion off balance sheet alone.
Does that mean were winning?

Wed, 09/19/2012 - 06:10 | 2810169 youngman
youngman's picture

Back in Weinmar they did not have electronic money...so they had to have wheelbarrows......now we all have computers to get our daily, hourly fix of inflated fiat....they would get paid twice a day in germany...make sure you have a broadband connection and a fast chip in your computer..because that milliseconds of delay  will cost you thousands in lost value....inflation mightl be that bad....got gold.....last week?

Wed, 09/19/2012 - 07:26 | 2810244 Sheeple Shepard
Sheeple Shepard's picture

Last week? Why not? It has to happen eventually, and all the nay-sayers are going to look like rabbits in the headlights. The way this snowball is starting to accelerate I can see panic buying of gold and silver occurring very soon, long before any major inflation rears its ugly head.
The deflation was just never going to be allowed to happen, the great unwinding by matching all the debt to the assets just isn't possible. Debt upon debt upon debt, hypothicated and re-hypothicated the re-re-hypothicated. Not looking forward to when it all goes FUBAR but I am looking forward to buying my whole street with a couple of Kruggerrands, every cloud eh?

Good luck my fellow wolves ;)

Wed, 09/19/2012 - 07:31 | 2810246 buzzsaw99
buzzsaw99's picture

no worries, the next number is quintillion and there are many more.

http://en.wikipedia.org/wiki/Names_of_large_numbers

Wed, 09/19/2012 - 09:30 | 2810650 shovelhead
shovelhead's picture

The Irish spell it O'Shitillion.

Wed, 09/19/2012 - 05:02 | 2810124 jmcadg
jmcadg's picture

This bullshit will continue until the sheeple wake up and take down the system by getting out of fiat. Most of them have no idea what is happening, they cannot link what QE worldwide is doing, they have no concept of counterparty risk, they still believe governments work in their best interest.

When reality bites ...

Wed, 09/19/2012 - 08:36 | 2810434 orangegeek
orangegeek's picture

Dow Jones hourly still shows corrective...yet more upside.  Earnings season in a few weeks - and the slide should commence then.

http://bullandbearmash.com/chart/dow-jones-industrial-average-hourly-sep...

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