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Global Retaliation To QEternity Begin: BOJ Considers Additional Easing

Tyler Durden's picture




 

Last week it was the Fed crossing the Rubicon with infinite easing. We explained very clearly that the next steps would be everyone else joining the infinite easing party. Sure enough, here comes the first one:

  • BOJ TO CONSIDER ADDITIONAL EASING: NIKKEI

Keep in mind that the BOJ already monetizes ETFs and REITs, the very instruments which the Fed will soon be forced to buy. And so it begins - because when it comes to pushing CTRL and P, over and over, it really doesn't take much skill.

It also means that the next round of purchases of precious metals will come from everywhere else, in addition to just the US.

Finally, those wondering why there was absolutely no response out of the market to news that previously would have sent stocks soaring, the answer, as we explained before, is simple: the Fed has literally shot itself in the foot... and the head. Because when you tell the market to price in QEternity, you just can't hope any more QE anywhere, anytime, out of anyone, will be a surprise.

 

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Tue, 09/18/2012 - 14:30 | 2807930 ZDRuX
ZDRuX's picture

I hear the Japanese have invented keyboards that have a dual CTRL-P key configurations. It'll be years before the FED gets their hands on one of these babies.

Tue, 09/18/2012 - 14:35 | 2807950 redpill
redpill's picture

The Japanese are unmatched in their ability to deny reality.  They will buy JGB until the bitter end.  And it's going to be really fucking bitter.

Tue, 09/18/2012 - 14:41 | 2807996 Lohn Jocke
Lohn Jocke's picture

Which is ironic considering how literal they can be when you do business with them.

I can sell them a panamax vessel full of corn and they throw a fit when they get the quality specs off, measured in parts per billion.

 

Tue, 09/18/2012 - 15:00 | 2808083 Mark Carney
Mark Carney's picture

hm let me see...... nope, silver did not get the memo.

 

Weird?

 

Let me try....

 

ALL MOTHER FUKIN CB's ARE CTRL +P!!!!!!! hi ho  silver!

Tue, 09/18/2012 - 15:29 | 2808209 saturn
saturn's picture

Easy Japs! The Chinks are quantitatively comming!

Tue, 09/18/2012 - 16:50 | 2808459 LeisureSmith
LeisureSmith's picture

If you can't CTRL-P. any serious Physician would advice you to use diapers.

Tue, 09/18/2012 - 16:12 | 2808340 unununium
unununium's picture

> panamax vessel full of corn

Best investment idea of the day.  How do I get one?

 

Tue, 09/18/2012 - 14:54 | 2808061 Divided States ...
Divided States of America's picture

Their adult entertainment industry is also unmatched. The creativity that goes into those films are truly astounding. However, I think Bernanke wants to outdo the Japanese when it comes to the creativity of printing more money.

Tue, 09/18/2012 - 15:11 | 2808119 redpill
redpill's picture

Given their affinity for tentacle sex, I would think they'd get along with Blankfein quite well.

Tue, 09/18/2012 - 14:44 | 2808004 vast-dom
vast-dom's picture

the Japanese have actually developed the SINGLE CNTL+P KEY such that it's now a one finger affair.

Tue, 09/18/2012 - 15:15 | 2808145 redpill
redpill's picture

Sounds like a Saturday night for Blythe Masters

Tue, 09/18/2012 - 15:30 | 2808214 saturn
saturn's picture

Pppp + P

Tue, 09/18/2012 - 15:38 | 2808253 BrainOpener
BrainOpener's picture

If he really wants to do his duty to prop up the market that means propping up Apple more and that means he needs to be using COMMAND+P.

 

Tue, 09/18/2012 - 14:54 | 2807936 LMAOLORI
LMAOLORI's picture

 

 

The Fed set off currency wars and maybe other Wars too

 

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.

 Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.

 

 

Chinese General: Prepare for Combat

 

Land Grab Convergence: China Military Drills Focus On Seizing Japanese Islands By Force

 

 

Tue, 09/18/2012 - 19:38 | 2808938 Citxmech
Citxmech's picture

The Chinese have really floored the accelerator pedal on this shit, eh?  Damn.  I guess this is the counter to our build-up in the ME?

Tue, 09/18/2012 - 14:32 | 2807940 Debtonation
Debtonation's picture

Savings to refinance my home from 3.75% to 3.25% from QE3: $44 per month

Increase in the cost of living for a family of 4 due to inflation: $150 per month

Calling Bernanke a fucking idiot because $150 is bigger than $44: Priceless

Tue, 09/18/2012 - 14:34 | 2807954 redpill
redpill's picture

"There are some things that money can't buy.  For everything else, there's QEasy central banker madmen (tm)."

 

Tue, 09/18/2012 - 14:42 | 2808000 Lohn Jocke
Lohn Jocke's picture

There is nothing that enough money can't buy.

Tue, 09/18/2012 - 15:02 | 2808048 e-man
e-man's picture

Eventually, there will be nothing that enough money CAN buy (the paper kind...).

Tue, 09/18/2012 - 15:25 | 2808193 Urban Redneck
Urban Redneck's picture

ME.

Tue, 09/18/2012 - 17:15 | 2808531 lasvegaspersona
lasvegaspersona's picture

uh John Locke...how about stability...can't buy that with Ben's kind of money

Tue, 09/18/2012 - 19:41 | 2808943 Citxmech
Citxmech's picture

Yeah - apparently you can't buy "zee price stabeeleety" or sanity with Benny Clown Bux.

Tue, 09/18/2012 - 14:38 | 2807982 Winston Churchill
Winston Churchill's picture

Money to the banks by the Fed buying MBS=

$40bn  X 40times(hidden liabilities) = $1.6 tn.per month.

In a mere 18 months they MIGHT even be solvent.

Tue, 09/18/2012 - 14:33 | 2807949 cougar_w
cougar_w's picture

"Coordinated QE" has always been in the cards. The Fed is working with all the other CB, including probably China who really need a global recovery and they needed it yesterday.

Tue, 09/18/2012 - 14:53 | 2808049 BandGap
BandGap's picture

There is a need to crash all systems simultaneously. This looks like a great approach!

Tue, 09/18/2012 - 15:05 | 2808098 LMAOLORI
LMAOLORI's picture

 

Indeed also a great approach for a World War 

Tue, 09/18/2012 - 14:35 | 2807964 BigMike
BigMike's picture

If I were the BOJ, I'd print money to buy gold. Then maybe people would listen.

Tue, 09/18/2012 - 14:35 | 2807966 rubearish10
rubearish10's picture

BOJ exchanging US TSY's for US Weapons.

Tue, 09/18/2012 - 14:37 | 2807975 JPMorgan
JPMorgan's picture

It's a race to the bottom, who can devalue their fiat currency the fastest.

Tue, 09/18/2012 - 14:39 | 2807985 kito
kito's picture

strangely enough, the dollar is soaring today......................

Tue, 09/18/2012 - 14:47 | 2808025 Vincent Vega
Vincent Vega's picture

Just some other fiat whore taking their turn in the barrell today. Don't worry, dollah is toast.

Tue, 09/18/2012 - 14:58 | 2808074 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It is ashes to ashes for the paper that burns so quick in the inferno called economics and finance.

Tue, 09/18/2012 - 15:33 | 2808078 akak
akak's picture

You are entirely wrong, Kito, the dollar is NOT soaring today, nor has it done so on any other day.  The values of fiat currencies move in only ONE direction, and that is down.

What you are erroneously equating to "the dollar" is in fact the artificial and contrived US Dollar Index, which only "measures" the US dollar against several other, more or less equally depreciating fiat currencies (on an long outdated trade-weighted basis, no less).  You know as well as I do that the dollar, like any fiat currency, never GAINS value, only loses it.

 

(PS: I did not junk your comment, as it is one that is heard so often in financial circles, incorrect and misleading as it is.)

Tue, 09/18/2012 - 16:20 | 2808363 Sheeple Shepard
Sheeple Shepard's picture

"OK, I'll re-raise you...1,no,10,no,100,no...oh forget it. CTRL+P

Tue, 09/18/2012 - 14:37 | 2807978 drivenZ
drivenZ's picture

Brazil will be next

Tue, 09/18/2012 - 14:57 | 2808068 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Brasil needs to buy some gold. 

They have none.

Tue, 09/18/2012 - 14:38 | 2807980 Dr. Engali
Dr. Engali's picture

So where can I get me some of this free money ? I have three kids to put through college, which by the time they get their the way they are printing will be funded with an one ounce gold eagle.

Tue, 09/18/2012 - 14:44 | 2807995 kito
kito's picture

doc, why dont i see you in the chat box at the bottom right of my screen?.................... you are listed as my contact. im trying to reach you......check your settings to see if you are in stealth mode.........turkey just shot up 14 percent...............i have to hurry....................

Tue, 09/18/2012 - 14:44 | 2808008 Lohn Jocke
Lohn Jocke's picture

Someone just went long turkey... it's not a very liquid market.

Nobody likes liquid turkey.

Tue, 09/18/2012 - 16:20 | 2808364 centerline
centerline's picture

Thanks for the tip.  I haven't actually checked my settings in a long time, and had chat turned off.

Tue, 09/18/2012 - 14:38 | 2807983 q99x2
q99x2's picture

Head for the hills here come the zeros. The empty set. Most difficult opponent. 

Tue, 09/18/2012 - 14:39 | 2807986 Snakeeyes
Snakeeyes's picture

This is only going to escalate. The Fed is acting on behalf of the Obama Admiinstration and will continue to do so,

http://confoundedinterest.wordpress.com/2012/09/18/why-did-the-fed-do-qe3-nahb-homebuilder-confidence-highest-since-june-2006-fnc-house-prices-keep-rising/

Tue, 09/18/2012 - 19:44 | 2808955 Citxmech
Citxmech's picture

Bernanke and Obama both report to the same masters.

Tue, 09/18/2012 - 14:42 | 2808002 lasvegaspersona
lasvegaspersona's picture

Paging Jim Rickards to the prophecy center....

Tue, 09/18/2012 - 14:55 | 2808064 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

....all falls down.

Tue, 09/18/2012 - 15:58 | 2808312 LMAOLORI
LMAOLORI's picture

 

 

With all the debt and nothing to back it in reality it's just a global ponzi now the question then becomes how long can they keep it afloat?

China still lead buyer of U.S. securities

Federal Reserve: Chinese Economic Data is Bogus

Are Chinese Banks Hiding “The Mother of All Debt Bombs”?

America's Under Water: Debt Equals 103 Percent of GDP

Tue, 09/18/2012 - 15:12 | 2808124 Tyler Durden
Tyler Durden's picture

We may be wrong, but it is possible that Jim Rickards was still espousing TBTF and bailing out LTCM with the blessings of the Fed back in 2009, when it became all too clear that the only solution is a global currency race to the bottom and which others would rediscover as "Currency Wars".

From Zero Hedge, July 18, 2009: Relative Central Bank Balance Sheets And Currency Races To The Bottom

Tue, 09/18/2012 - 14:45 | 2808011 Rick Blaine
Rick Blaine's picture

Oh, come on guys...

It just HAS to work one of these times...

Right????

Tue, 09/18/2012 - 14:49 | 2808029 kito
kito's picture

oh, it works.....been working for 100 years......just not working for the little people of the world..........................just ask g edward griffin........................

 

http://www.alt-market.com/articles/1038-the-end-of-the-line-an-interview-with-g-edward-griffin

Tue, 09/18/2012 - 14:54 | 2808059 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Confidence schemes all around.

Tue, 09/18/2012 - 14:56 | 2808067 campag
campag's picture

on a different note the ICE oil trading platform has been dramatically slowed down by the exchange . Bolted horse and stable door spring to mind. where the fuck were they yesterday -watching porn like the SEC.

Hope this is really pissing off the HFT crowd or did they make enough yesterday and are not bothered?

Tue, 09/18/2012 - 15:01 | 2808085 AlaricBalth
AlaricBalth's picture

Global currency debasement. The Bank of England should be chiming in soon.

Tue, 09/18/2012 - 15:05 | 2808099 e-man
e-man's picture

The Bank of Zimbabwe will be laughing soon.  Welcome boys, what took you so long?

Tue, 09/18/2012 - 17:17 | 2808538 akak
akak's picture

But, but, but, just look at how well Zimbabwe's successful currency devaluation worked to the advantage of their export sector!

(/sarc)

Tue, 09/18/2012 - 15:03 | 2808094 Vince Clortho
Vince Clortho's picture

Printing War!

Whoever prints the most money the fastest wins!

Zimbabwe off to a good start.  

Prosperity and good times*

 

 

* if you are a Central bankster

Tue, 09/18/2012 - 16:15 | 2808348 unununium
unununium's picture

> Prosperity and good times*

> * if you are a Central bankster

Not fair.  These are pretty good times too for miner warrants like FNGHF, SLWVF.

 

 

Tue, 09/18/2012 - 16:16 | 2808352 topspinslicer
topspinslicer's picture

take it easy everybody, take it any way you can get it

Tue, 09/18/2012 - 16:17 | 2808353 topspinslicer
topspinslicer's picture

with an infinite frontier in front of us there is plenty of room for all nations

Tue, 09/18/2012 - 16:18 | 2808356 topspinslicer
topspinslicer's picture

Is the QE to eternity becoming a crowded strategy?

Tue, 09/18/2012 - 16:41 | 2808436 Cow
Cow's picture

Just this once, because this time it is different.

Tue, 09/18/2012 - 18:35 | 2808764 YesWeKahn
YesWeKahn's picture

What worries me is that there is not alt and delete key, I can't event reboot.

Tue, 09/18/2012 - 19:51 | 2808981 Citxmech
Citxmech's picture

This is like "The Socerer's Apprentice" except with fiat instead of mops and buckets.

Tue, 09/18/2012 - 19:13 | 2808860 Lost Wages
Lost Wages's picture

You'll notice the bond bubble has never burst in Japan. That might change if the Chinese decide to sell all their JGB in retaliation for Japan wanting to escape its radioactive island for some new ones. At any rate, I'm still waiting for treasury yields to continue their dive after this MOPE and tape-painting nonsense is over in the stock market.

Tue, 09/18/2012 - 21:02 | 2809243 Paracelsus
Paracelsus's picture

Well,after they scrapped Bretton-Woods,the idea was that all the currencies would float against each other.They are floating all right.... 

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