BoJ Eases. Einstein Rolls Over In Grave

Tyler Durden's picture

Update: Well, JPY10 trillion bought about an hour. USDJPY now higher than pre latest QE:

"It won't be long before CPI is back above 1%", we promise, this time - we really mean it - is seemingly how the BoJ defends its decision to follow Einstein's definition of insanity  by doing the same thing over and over again expecting a different outcome (Nov 2008 was the last time CPI was above 1% YoY). Admittedly, at some point the ever-increasing BoJ balance-sheet-to-GDP will become too much even for a nation hell-bent on printing its way out of chronic deflation only to be punched-and-kicked by a balance-sheet-recession so deep and full of deleveragers. The facts are that the BoJ will expand its LSAP-equivalent program by JPY10tn (USD123bn) - raising the 'stock' - but maintaining the same pace of JGB-buying at JPY1.8tn per month - leaving the 'flow' stable - hence extending the program by around six months. At the same time they have extended the maturity of JGB purchases from 2Y to 3Y (try and wring a little more duration out of an already starved yield curve). USDJPY was entirely confused out of the gate and rallied immediately only to about-face and sell-off up to 81.45 before already giving back half of its losses to pre-BoJ anouncement. The JPY sell-off implicit carry moves did nothing to move US equity futures (which limped up 1-2pts and then gave it back) and even the NKY has retraced 65% of its post-BoJ gains. Perhaps it is all about the flow and the need for that second derivative to be constantly rising after all? Whether it is repatriation flows or carry-unwinds, JPY devaluation (as we have discussed Andy Xie's perspective on) may just have to be done 'forcefully' as opposed to 'suggestively'.

Full summary of the BOJ's action:

USDJPY's rip-dip-and-leak-back-higher...

and the NKY has lost over 65% of its post-BoJ gains already - quite a half-life...

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LetThemEatRand's picture

We're all turning Japanese.  I really think so.

Banksters's picture

Central banking, so easy a child could do it.   And voila, MONEY!  

Michael's picture

Why can't they just grow up and call it what it is, debt monetization program?

Oh regional Indian's picture

Boj has been easing since 1991. 

The circle of "Development Loans" and "Bridges to Nowhere" (it takes 14 Japanese men to change a light bulb, literally), this had to happen.

I think it's telling that Fukushima was the explosion of explosions. In this mad world, the Yen will go like that and then continue to spew/pollute and ultimatey kill.

Most everyone here knows that the Great Carry Trade unwind is yet to begin. 



Zgangsta's picture

Japan has long since achieved Too Big To Fail status.  If Japan fails, then everything fails.

narnia's picture

They'll try to roll out the SDR before the Yen capitulates.

Zgangsta's picture

They'll try to raise a quadrillion dollars, build the Super Dimension Fortress Macross, and skip out on all of us before the Yen capitulates.

e_goldstein's picture

If Japan fails, then everything (else) fails. 
Fixed it for ya. 

Zgangsta's picture

No, it hasn't, yet.  In the everyday real world, Japanese are getting paid, they are about to get hammered at the bar, and from tomorrow will go travelling all over the country, neigh, the world, celebrating Golden Week.

You have no idea what "failure" actually is...

Oh regional Indian's picture

Perhaps you have  no idea what the difference between "Appearence of Survival" and "Thrival" is?

Lived in japan? I have. Even Japanese don't know what it means to be Japanese anymore, except hollow gestures to a forgotten past. Or should I say buried past?

Actually the same can be said of the US to, in so many regards. Surviving with a SmileY.


Short Memories's picture

Perhaps you should have gotten out of the city more instead of picking up banker gold diggers under roppongi hills! :)

You have to dig a little but Japan is still there. we all saw it in the attitudes during and after the earthquake.

trebuchet's picture

then they would admit its not a free market and we are slaves to their fiat



Tyler, if flow is steady they arent going to make a change - duh i guess thats that point of your article


But! flow down in US!!!   its all relative, so.... MAYDAY MAYDAY!!! things are not looking good fo US equites

Stoploss's picture

further proof deflation is the most powerful financial force.

Driven home daily in the land of radioactive sunrise.

Oh regional Indian's picture

Very true. First trip to Japan, I was shocked at how reasonable everything was. In rupee conversion at that. Especially once you leave the big cities.

But the ridiculously over-printed Yen means you pay many pieces of paper and over-de-nominated coinage for things.

Big enigma till you figure out:

Japan has been living a Nuclear Fueled Free Energy Sunrise. That Sun has now set.

All, note ALL nuclear power plants are now off-line. 

Since cost is really embedded energy at it's core..... Japan's price competitiveness for the level of quality their machines put out was ENTIRELY due to nuclear energy.

Rents are high purely due to space constraints, everything else is slip sliding away.




HarryM's picture

Everybody is all in and nobody is going to bow out first willingly.

Perhaps the Germans , but I wouldn't even count on them.

Assetman's picture







Who comes next?

Rahm's picture

Race to debase!


20 lost years, 30 lost years, 40 lost years.........

Zgangsta's picture

You sure it's 10 trillion yen?  Not 5 trillion?

FinalCollapse's picture

If I read it right it is 5T net. They print 10T new ones but cut back another program by 5T - so the net is 5T. Kinda confusing - I hope I read it right on another website.

Hansel's picture

The fact is the BOJ has been successful.  They are still in power, and that is all they care about.  There haven't been 20 lost years; they've been there the whole time.  The Fed is emulating them for this reason.

Assetman's picture

The Banks for the most part have stayed around as well.

Who says zombies can't live the good life?


bnbdnb's picture

Buy USD and GBP against the YEN on bond sale date, IMO.

Yen Cross's picture

  I'm still a dip buyer. The  usd/jpy want's to move up!  I made a  few pips. 

  Bedtime /

superflyguy's picture

Was it Einstein who said that? Or Rita Mae Brown? Or Ben Franklin? Maybe Bush?

BlackholeDivestment's picture

...reminds me of Old Dogs. These boys can't do anything but the same tricks, but, they are still gonna ,,,still gonna..

Zgangsta's picture

Nikkei is hitting the daily lows now!

Yen Cross's picture

Kospi/ aka Japanese NASDAQ!

hyper-critical's picture

The "Monterist Brown Note," or simultaneous pants' shitting of shirakawa, draghi, king, and bernanke. I have been waiting for this day since qe began. Cheers to the laws of nature! And if yen continues to be bid through the european and american sessions, consider this the beginning of a new chapter in the global currency wars entitled "The Road to Nominal GDP targeting..."

Mine Is Bigger's picture

According to the, it's 5 trillion yen, not 10 trillion.

chump666's picture

C'mon rating agencies raise hell! Our goverments have no balls allowing central banks to go rogue and make up the rules as they go along (and become more insane as ZH points out).  Time to downgrade the f*cking world.


Yen Cross's picture

 Tyler. I can't stop laughing.  That was a really good comment.


chump666's picture

* BoJ to up QE by net Y5 trln, extend maturities to 3-yrs from 2-yrs, up J-REIT and ETF purchases, cuts size of fixed-rate market operations by Y5 trln,   economy recovering modestly, optimistic on achieving 1% inflation target.

* Japan FinMin Azumi - Considering possible purchase of Korea government bonds

hahahahahahaha...pure madness

Yen Cross's picture

The next MoF meeting will pump and dump 15 trillion ¥ !

dark pools of soros's picture

so people reading their headlines and keep thinking they mean what they say are any less insane?  it's all a ruse

tahoebumsmith's picture

Ease WHAT? Japan's DEBT is now well over 250% of GDP? You wanna talk about a lost decade, how about a lost Century? Don't worry about the debt, the Radiation is going to take them out long before the BOJ runs out of ink for its printing presses. Anywhere you dig in Tokyo, the radiation is xx50 times the prevoiusly considered safe level and all the Government has done is raise the acceptance levels? Very few of you realize the seriousness the impact Fukushima will have. Toyko is toast... The entire Island is toast... Just like the Deep Water Horizon Spill celebrated its 2nd anniversary with a 400 lb catch of completely eyeless shrimp... I'm sitting here in Cali eating strawberries that are tainted and drinking milk with abnormal elevations of radiation then would be considered unacceptable PRE Fukushima. Don't worry though, the Government stopped testing these simple indicators just months after the GOM Disaster so everything is just fricken ok. We can bitch slap ourselves everyday when we witness the PPT and the ALGO MACHINE make the playoffs at APPL Stadium however the Radiation and Toxic brews we have created on this planet will bring us down long before any stock market crash or currency crisis. I feel really sorry for all those 40+ million people in Tokyo that have been lied to. They are on chemotherapy and they just don't know it yet. Amazing how a 1.2T yen hopium injection could just shut everybody the fuck up and seemed to make the whole problem just go away? When the MSM finally reports the first eyeless infant in Japan after many cover ups, that's when you will have to start worrying here in Cali. I don't give ones rat's ass what anybody says at this point,,, we are simply all merely just DREAMERS...

tahoebumsmith's picture

Here is the Google Ad that came up on the ZH Hedge page after I posted my comment... copy and pasted from the left corner within 60 seconds...


Welcome to your new world BITCHEZ.. It's way more complicted then even Tyler can keep up with...He's merely scratching below the surface, just wait until we start pulling out the shovels?

Oh regional Indian's picture

Very true TBS.

Fukushima+DWH = ENd of the INdustrial age.

I'd really like to see that TRAV's smirkign face now. I'd said it 2 days after that all Nuke power will shut down in Japan.

Everyone downvoted, yelled, abused, called me dumb, impossible etc. etc.

Well, Japan has Zero reactors on-line right now. If all was well, would they?

And San Onofre, keep an eye on that bro. Kalipornia is looking dangeroussss!


Overflow-admin's picture

Nothing to see in Tokyo, move along... NOT!

Yeah sure, officials will say its because of bacterias or something like that. I hope there are some independent scientists taking soil and vegetal samples out there, IMHO and intuition this is result of fission products contamination.

Incubus's picture

Resets are necessary in the manifest of subjective human constructs;  reset will happen whether the system managers want it, or not.  The object of "society" is control of populations in order to exploit their labor for the sake of a generalized prosperity for "the rest," while top of the strata gets the true profits of the labor effect. 

All of these silly theories are only philosophies to follow to manage the masses.  You cling to them as unyielding truth and you will lose your head when the masses come for you.   It is wise to understand and accept the nihilism of our systems and why a reset is not admission of a rigged system--an unfair game, but rather, an acceptance that the system never meant anything from the start.  




cranky-old-geezer's picture



Keeping the sovereign debt ponzi scheme going is the only thing that matters now, and central banks must print ("ease") and buy it or the ponzi scheme collapses.

Japan has been doing it 20 years now, but they had a strong trade surplus which kept the yen up, allowing BOJ to print without severely debasing the currency.

But it's different now, Japan no longer has that trade surplus, and further printing will debase the yen.

Sovereign default simply won't happen.  Central banks will print all the currency needed to keep the ponzi going.

But printing debases the currency.  This is something Bernanke never mentions.  He avoids the subject like a plague.  Nobody else in power ever mentions it, and pseudo economists like Krugman never mention it either.  It's up to people like us to mention it and try to warn others what's happening to the currency.

With continuous printing to fund continually rising soveriegn debt, inflation, then hyperinflation, then currency collpase is what's gonna happen, and yes the population will end up broke and destitute when the currency does collapse.

Of course we've seen it before.  Weimar Germany is the best example.

"Easing" is a nice way of saying "looting".   "Easing" is stealing wealth from the people and loaning it to the government (or banks).  Giving it actually, because it'll never be paid back.

No, they're not stealing our children's wealth.   They're stealing our wealth, right now.


Incubus's picture

Why is it your wealth?

Because you say so?  Because you've acquired a certain amount of chips and now you think it belongs to you and not the house?  They'll tell you how much you're worth and you're gonna have to accept that.

Yen Cross's picture

 80.50n looks Edible! That parabolic SAR on the  Eur/Jpy looks ripe for the harvest in Europe!

jmcadg's picture

Check that for a half life. Within 1hr 30mins the Yen was back stronger than before.

If they want to weaken the yen they need to implicitly do so... it still won't work, but that is their goal, so why waste time.

valley chick's picture

futures look like a sea of red...need another QE rumor...geez shelf life not as long as it use to be with the rumors...

and then it floats up...up...up....

fourchan's picture


im in yen, domo arrigato mr roboto.  kerplunk goes the us funny money.

q99x2's picture

Monsanto and Bayer poisened 200 million acres of US farmland to grow GMO corn. Ethanol may not be a bad idea after all. The GMO has wiped out about 45% of the pollinating insects and causes tumors in people.

Bill and Melinda Gates are seen largely responsible as owners of Monsanto.

Yen Cross's picture

?  My tap water tastes nasty!

TwoShortPlanks's picture

"BoJ Eases"...are they trying to force Banks to lend???...ROFLMAO!!!