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BoJ Follows In China's Foosteps, Defers To Fed On Easing

Tyler Durden's picture





 

Disappointing the liquidity-starved masses, the BoJ wholeheartedly believes that this time it's different and their economy remains more or less flat and shows signs of picking up leaving hope for another massive LSAP (and a disappointed SocGen) having to wait for the Fed to pick up the pieces of a global slowdown. The BoJ maintained the size of its asset-purchase fund, credit-loan program, and ZIRP noting that, via Bloomberg:

  • *BOJ SAYS NO ONE PROPOSED EXPANSION OF STIMULUS AT MEETING

It seems the Japanese are following China's lead (since China's economy posted a trade surplus on expectations of a deficit and following the biggest import surge since 1989, this means that the hard landing is delayed as the PBOC is far more concerned about the pockets of food inflation noted yesterday and as such will be far less willing to proceed with the easing everyone demands) and deferring to the Fed for the next global liquidity pump (remember its flow not stock so this is bad news for risk-on - as can be seen in AUDJPY, Oil, and Copper). Gold is so far enjoying this as one by one global central banks check to the Fed's check-raise expectations.

 

 


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Mon, 04/09/2012 - 23:36 | Link to Comment holdbuysell
holdbuysell's picture

Wait for it...wait for it...

CTRL-P

Tue, 04/10/2012 - 00:03 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

20 lost years.  Do I hear 30? 

Tue, 04/10/2012 - 00:35 | Link to Comment LowProfile
LowProfile's picture

Looks like it's all up to the ECB now!

Get ready for the EUR to commence base jumping w/o a chute.

Get your pry bars ready boys!  This isn't going to be buying the dip, it's going to be prying gold coins out of the crater...  If you know what I mean.

Those with really big balls (and really tiny brains) are invited to short everything denominated in anything other than EUR (except the EUR).

Unless...

Japan beats them to it!!!  In which case, EUR goes down less hard, and everything else (except the...  Gasp...  USD) craters HARDER.

...What a crusterfruck.

Not that this scenario changes the endgame at all, mind you.  USD is still taking a dump for the ages.  Just spitballing the near term here.

Tue, 04/10/2012 - 01:15 | Link to Comment johnu1978
johnu1978's picture

The whole global economy is breaking down!

 

-John
Bowmaking Classes - Wild Edible Tours
http://www.heartrootnatureconnection.com

Tue, 04/10/2012 - 01:18 | Link to Comment derek_vineyard
derek_vineyard's picture

japan never had their banks write off their bad debt, either

deja vu

Tue, 04/10/2012 - 01:53 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I hear the sucide culture is back with a bang in Japan. No surprise, eh?

Polar bears showing signs of radiation poisoning. What do we think is really going on in Japan.

For anyone who has interacted extensively with Japan/ese, it was never a functioning global economy. It was a little island, totally cut off from the world except for "Made in japan" goods, crazy trends (Hello Kitty, Pokemon, Manga) and a populace forever caught in "knowing' English but never able to speak it.

And interestingly enough, they are doing well enough from a power perspective, with only 1 reactor on-line. 

In a word, Japan is merely the 51st state. All this BOJ talk is moot. BoJ is a subsidiary of the Fed.

And they were given the curse of free energy. 

ori

/the-curse-of-free-energy/

Tue, 04/10/2012 - 02:15 | Link to Comment chump666
chump666's picture

I'd be watching India, still got a long bet that they will go at it with China say end 2012 early 2013 over gas reserves off Vietnam.  Hence India getting cushy with Pakistan.

War was always on the cards, but inflation/energy scarcity will drive us closer to the edge.  All thanks to the central banks.

Tue, 04/10/2012 - 03:39 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Chump, sadly, China and India will go at each other when their masters tell them to. But yes, all the elements are there, border tension, huge and exploding military budgets, starving millions, the script si taut and reay to go anytime.

Plus, all border indians, most of them culturally more chinese than Indian are easily swayed by Propaganda.

Wait and watch, but again, some black swans (for the good side) are definitely circling. Hope they manage to land before the red button is pushed anywhere.

ori

Tue, 04/10/2012 - 05:58 | Link to Comment Straying from t...
Straying from the flock's picture

Why would Japan want to be responsible for the end of the global economy when they can defer to the Federal Reserve?  The Fed is already in the throws of OT and QE 2.5, why not just let them continue to lead the way in bringing this farce to an end?  Besides, Japan has plenty to deal with on their glowing problems in the north.  Keep your eyes on the horizon.  The firestorm is projected to make landfall soon.

Mon, 04/09/2012 - 23:37 | Link to Comment Cursive
Cursive's picture

LOL.  Central Bankers and their momo chasing nut huggers, paralyzed with fear.  Welcome to the choas you created.

Mon, 04/09/2012 - 23:46 | Link to Comment DormRoom
DormRoom's picture

I guess they are concerned QE would push USDJPY to 75 <--death match Guro level

Tue, 04/10/2012 - 00:03 | Link to Comment Yen Cross
Yen Cross's picture

usd/jpy + aud/ usd = 79 and some change ( aud/jpy)

Tue, 04/10/2012 - 01:03 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

any nyquil left? 

where does the elevator stop?

Mon, 04/09/2012 - 23:44 | Link to Comment Atomizer
Atomizer's picture

BOJ will trigger another mass consumer widget gimmick to help the sheeple overcome radioactive Central Planning failure.

Lewis Black - Milk & Water

Mon, 04/09/2012 - 23:44 | Link to Comment ekm
ekm's picture

http://www.marketwatch.com/story/china-businessman-who-built-an-empire-vanishes-2012-04-09

When this happens, things are really, really, really bad.

 

If anybody need enlightening as to what I'm talking about, you may want to watch this again.

http://www.imdb.com/title/tt0068646/

 

Mon, 04/09/2012 - 23:54 | Link to Comment DormRoom
DormRoom's picture

He's either pig food, or in Vancouver.

Tue, 04/10/2012 - 00:36 | Link to Comment HD
HD's picture

 Canadian Bacon!

 

 

Tue, 04/10/2012 - 00:40 | Link to Comment Yen Cross
Yen Cross's picture

 I can't stop laughing! That was funny.

Tue, 04/10/2012 - 01:25 | Link to Comment HD
HD's picture

Thanks. Very kind of you to say.

Mon, 04/09/2012 - 23:48 | Link to Comment Captain Benny
Captain Benny's picture

Yep, gold is up alright.  But the interesting story is silver.  Its minute-by-minute volatility is interesting for the last 24+ hours.  Its as if someone trying to cap the price is having a little trouble keeping their systems continuously operating.

Tue, 04/10/2012 - 01:07 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

big trubs

it's up 25 cents!

Tue, 04/10/2012 - 01:30 | Link to Comment Zero Debt
Zero Debt's picture

Could be a fight between two trading strategies:

One holding a ratio basket of gold+silver so when gold goes up, they have to buy silver to retain the proportions.

The other one selling a basket of commodities including gold when stocks fall, to retain a proportionally allocated basket of "risk assets" e.g. stocks commodities + "safe haven assets" e.g. bonds.

Either way, if gold goes up when both stocks, bonds and commodities go down, the algos will most certainly get confused on how to classify gold.

Tue, 04/10/2012 - 01:59 | Link to Comment LowProfile
LowProfile's picture

 

Yep, gold is up alright.  But the interesting story is silver.  Its minute-by-minute volatility is interesting for the last 24+ hours.  Its as if someone trying to cap the price is having a little trouble keeping their systems continuously operating.

Stop teasing my cock, Blythe!  God I hate upper class bitchez.

Mon, 04/09/2012 - 23:57 | Link to Comment Yen Cross
Yen Cross's picture

Compartmentalization!

Mon, 04/09/2012 - 23:57 | Link to Comment HD
HD's picture

We all know the Fed is going to print (someone has to buy all those T-bills) - the question is when. It's going to take longer than a week or two to reverse course. I think Ben needs the markets lower...much lower.

Tue, 04/10/2012 - 00:03 | Link to Comment urbanelf
urbanelf's picture

Print WHAT?!?!?!  That's crazy talk, son.

Tue, 04/10/2012 - 00:40 | Link to Comment chump666
chump666's picture

Whoa slow down.  Japan and China net importors of oil, with Iran war now looming at least for May 2012.  The Fed prints and China WILL go to war.

Fed will stand pat. 

Tue, 04/10/2012 - 01:16 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

generalHaig to the white courtesy phone in the bequerelBar, please...

Tue, 04/10/2012 - 00:39 | Link to Comment chump666
chump666's picture

USD is bid ala Asia watching it now

Tue, 04/10/2012 - 00:49 | Link to Comment barliman
barliman's picture

 

April 10th and this gentleman has been out of pocket since just before the "coup" rumors started in China

Probably unrelated ... probably

Meanwhile, the ADHD-generating MSM (seriously, how can you not see the relationship?) continues to seek distractions from reality. The "white Hispanic" thing hasn't played out very well. The "unelected judges" effort backfired - Obambi denounces them and their popularity increases ... that's funny, I don't care who you are.

And the "elites" around the globe are deferring to Ben "Jawbone-of-an-Ass" Bernanke to make the first move with insufficient probable cause from the markets ... ANY of the markets.

Turn off all the "noise" and listen to your heartbeat ... the paralysis is growing globally and you won't hear the first cracks of the collapse if you don't pay that close of attention.

One other thing you can count on, all of your usual sources of information (maybe even ZH) won't be looking in the right direction when it starts. By the time everybody is looking at it, it will be too late to take a position on it.

barliman

Tue, 04/10/2012 - 00:53 | Link to Comment jonjon831983
jonjon831983's picture

1) Nobody knows what to do...

US Fed, it's your move... and we'll react to counter your actions...

OR

 

2) CB's are trying to coordinate some sort of action.

Tue, 04/10/2012 - 01:57 | Link to Comment lasvegaspersona
lasvegaspersona's picture

jonjon

1) Nobody knows what to do... Harry Reid 2008

know your quote sources

Tue, 04/10/2012 - 01:06 | Link to Comment q99x2
q99x2's picture

So does this mean that yes equals no or no yes?

 

      Something doesn't seem right. 
      CNBC Doomsday Homes

     

    Tue, 04/10/2012 - 00:56 | Link to Comment Yen Cross
    Yen Cross's picture

      ???  Can't we all just get along?

    Tue, 04/10/2012 - 01:16 | Link to Comment jack stephan
    jack stephan's picture

    The first page was goofy hahahahaha

    Martin Prince: [in the Pool-Mobile] Take your best shot! I'm wearing seventeen layers!
    [all kids gather around Martin and snatch all of them]
    Martin Prince: [gasps] I brought this on myself.
    [runs away]

    Tue, 04/10/2012 - 01:29 | Link to Comment Fast Twitch
    Fast Twitch's picture

    What happened to the Eagen Jones downgrade? Have we collectively induced short term memory loss? The US credit rating went from AA+ to AAPL....go fiqure. It's gonna be an epic earnings season...no me aguanto!

    Tue, 04/10/2012 - 01:45 | Link to Comment pleseus
    pleseus's picture

    Sell everything. Go to cash.

    Tue, 04/10/2012 - 02:09 | Link to Comment Peter Pan
    Peter Pan's picture

    When your bucket is full of holes you may be forgiven for thinking you have a liquidity problem when in actual fact it is a structural problem.

    So it is with the FED. The FED cannot fix the problems created by idiot politicians and greedy elite bankers by simple engaging in QE and ZIRP.

    Tue, 04/10/2012 - 02:25 | Link to Comment upb
    upb's picture

    silver/g old still the place to be IMO  http://tinyurl.com/733vvxf

    Tue, 04/10/2012 - 02:52 | Link to Comment max bucket
    max bucket's picture

     Lacy Hunt who was previously the senior economist for the Federal Reserve Bank of Dallas and the chief US economist for HSBC now with Hoisington thinks we're all going down the gurgler

    Great interview   http://www.businessspectator.com.au/bs.nsf/Article/Fed-US-economy-jobs-Q...

     

    (I think you have to join to view but worthwhile)

    Tue, 04/10/2012 - 08:31 | Link to Comment tarsubil
    tarsubil's picture

    Nice summary of the s*** storm we're facing.

    Tue, 04/10/2012 - 03:17 | Link to Comment Fast Twitch
    Fast Twitch's picture

    "Sackie Boy's" been laid off. As when an exec leaves a company, that's gotta be a sign, not all is well at the top. Perhaps the safety net won't be there this time?

    Tue, 04/10/2012 - 03:53 | Link to Comment Dre4dwolf
    Dre4dwolf's picture

    Japan is too busy spreading radio - active material around to care about its monetary problems.

    I hear they are taking radio active waste material from the Fukushima area, and loading it into trucks, driving it to uncontaminated spots in souther Japan and then and there burning it out in the open, spreading the radio- active waste into the otherwise uncontaminated sections of Japan...... these people are sick... murdering their own people like this intentionally....

     

     

    Tue, 04/10/2012 - 04:19 | Link to Comment jmcadg
    jmcadg's picture

    This is like some little kid that can't (read won't) tie it's shoe laces and expects daddy to.

    Or is this a total head fake and any day they will devalue the yen.

    Remember to work it has to be unexpected and swift.

    Otherwise the Japanese motor industry (the 'engine' of the Japanese economy) will soon have completely shifted offshore.

    Tue, 04/10/2012 - 05:04 | Link to Comment Tom Green Swedish
    Tom Green Swedish's picture

    10 year bond yields.  Looks at where the "BRICS" are at:

     

    Brazil 12.55

    India 8.78

    Russia 6.00

    China 3.55

     

    Japan although has the biggest deflating currency borrowing cost is 1 percent a year.

     

    Is growth associated with super high borrowing costs? 

    I'm confused it has been a major problem for Italy Spain Ireland and Portugal to go over 7 percent a year.  Brazil is at over 12 percent.  Is this where my money should go?

     

    USA debt to GDP went up from 57 percent to 93 percent from 2000

    Germany debt to GDP went up from 59 to 83 percent from 2000

    Italy debt to GDP went up from 109 to 119 percent from 2000

    Brazil debt to GDP went down from 66.7 to 66.10 from 2000

    India debt to GDP went down from 71 to 69 percent from 2000

    Russia debt to GDP went down from 59.9 percent to 9 percent from 2000

    China debt to GDP went from 16.4 to 17.7 from 2000

     

    My only question is what the heck is the USA doing borrowing all this damn money for? To support Saudi Arabia and the BRICS?  Although a couple countries lowered their debt to GDP substantially including Bulgaria, Russia, Saudi Arabia, and Qatar the USA can do the same too.

     

    I'm hungry and thirsty. Time to get something to eat.

     

    http://www.youtube.com/watch?v=e59rh3EV4gk

     

     

    Tue, 04/10/2012 - 05:20 | Link to Comment I am Jobe
    I am Jobe's picture

    Repeat USSA is Not Japan Yet, soon will be. Lost Decade or two. Welcome to the USSA.

    Tue, 04/10/2012 - 05:25 | Link to Comment Tom Green Swedish
    Tom Green Swedish's picture

    Great USSA I like it. 

    When can we dump the shit states?

    Tue, 04/10/2012 - 05:39 | Link to Comment I am Jobe
    I am Jobe's picture

    List the shit states

     

    Tue, 04/10/2012 - 06:39 | Link to Comment gibons
    gibons's picture

    actually I was disappointed too

    Tue, 04/10/2012 - 07:32 | Link to Comment youngman
    youngman's picture

    So does this mean that Japan will not be a big buyer of our treasuries now......I think so...

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