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Japan's Shocking Keynesian Slip: "We Are Worse Than Greece"

Tyler Durden's picture


In a stunning turn of events, a Japanese Ministry of Finance official admits to Richard Koo's worst nightmare "Japan is fiscally worse than Greece". Bloomberg is reporting that, at a conference in Tokyo, Yasushi Kinoshita says Japan's 2011 fiscal deficit was up to 10% of GDP and its debt-to-GDP has soared to over 230%. What is more concerning is the Kyle-Bass- / Hugh-Hendry-recognized concentration risk that Kinoshita admits to also - with a large amount of JGBs held domestically, the Japanese financial system is much more vulnerable to fiscal shocks (cough energy price cough) than Europe. Of course, the market is catatonic in its reaction to this - mesmerized by the possibility of buybacks and hypnotized at big-banks-passing-stress-tests - though we do note the small reverse stronger in USDJPY has reversed as this news broke and the USD pushes modestly higher.

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Tue, 03/13/2012 - 21:38 | 2252650 nmewn
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Tue, 03/13/2012 - 22:26 | 2252799 Unprepared
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Everybody calm down, he said that at a purely philosophical level. He meant "Please bail us out, we deserve it more than Greece" ... "What? No?" ... "Well, it was worth the try."

Tue, 03/13/2012 - 22:38 | 2252822 Cadavre
Cadavre's picture

Recent history says soveriegn fiats of defaulted economies strengthened against the dollar. Does this mean a 60 JPY / USD is the works - gosh they'll be able to import a lot more US debt!  After all, that is about 40% of our domestic output - well that and being the butt of the civilized world's jokes.

Tue, 03/13/2012 - 22:58 | 2252874 Pinto Currency
Pinto Currency's picture


Blow a monetary debt bubble economy then collapse the bubble.

Then print more money and deficit spend.

Strange how it destroys your economy with absolutely no dependency upon which time zone that your country is located.

Print, collapse, print, destroy.

Tue, 03/13/2012 - 23:07 | 2252897 flacon
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44 minutes of extacy:



Ann Barnhardt & W Pollock Re John Locke and Future Trends



Wed, 03/14/2012 - 01:18 | 2253077 NoMoreBull
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This video gives one of the most poignant and accurate descriptions ever voiced on the true present state of America.  In 1770 the population of the original 13 colonies was 2.1 million.  When faced with repressive government rule from England that was probably only 1/10th of the suffocating bureaucracy and corruption that 310 million complacent americans live under today, they banded together, over threw the oligarchs and built a new government that flourished for over 200 years.  If this video could rally only just 1% of the taxpayers that viewed the Kony2012 video this week, to join Ann Barnhardt and refuse to pay anymore federal income tax, this corrupt system would soon end!

Wed, 03/14/2012 - 02:43 | 2253165 AbruptlyKawaii
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Wed, 03/14/2012 - 04:53 | 2253235 spdrdr
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Ease off the Sake? (???)

Wed, 03/14/2012 - 16:15 | 2255623 Cadavre
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The reactor was a GE reactor and a GE reactor design. A GE whistleblower said the reactor design was high risk and did not provide the protections GE said it would before it was even built.

Ya ever notice that when the Japanese get all uppity about US military bases, it is always followed by a rash of Toyata recalls (only in America)?

Wed, 03/14/2012 - 15:40 | 2255494 Cadavre
Cadavre's picture

Her message is honest and informed.

But ... about 29 Minutes in she makes what seems to be an argument that Dr Paul, because of congress won't allow it, would not be able to address what we face.

A President Paul is also a Commander and Chief. The "pen" in his hands can repatriate our troops and congress can't do nothing. He nominees are the only ones that congress can approve or disapprove of - they will be his people - and congress cannot do anything about it. A President Paul could 86 any and all executive orders. A President Paul can instruct his Ambassadors and UN reps as to the position.

Look at the Way Coke Dealer Clinton handled congress - Congressional posturing eventually and essentially made em all look like a bunch of pussies.

A president Paul can do a lot. And that's why her argument, as it relates to a Dr Paul presidency seems a tad off the mark.

We are spozed to obliged by a document the underlies the constitution. In a perfect example of an idiot cutting off the nose despite its face, our DoS Fuhrer Hilary (whose ripened into a double knit suited physical caricature of a fat face fat body version of Russia's Putin), has declared that governments that shoot at armed insurgents are war criminals - soze the guessing is, that should the commons decide to throw off such Government, and to provide new Guards for their future security, then Hilary's battalions of XE mercs wont be lifting a finger to stop it. If they do, it's Nuremberg for sure, if 300 Million American Assholes don't get to `em first!

Wed, 03/14/2012 - 04:42 | 2253230 Cadavre
Cadavre's picture

Speaking of struts for sovereigns ..

It looks like all the players want to go to the "cage" and cash in their chips. The "cage" is the NY FED custodial vaults. The chips are cashed in for the gold the NY FED is supposed to be securing for for a whole passel of sovereigns with a whole bunch of gold. A moment of clarity approaches.

And, BTW, we have always been on a gold standard. What is a standard?. It can be a way to measure relative value. It can be, for example, a monetary standard use to fix allowed outstanding currency units to a value standard (line xx dollars per ounce of reserves held). Just cause we float M2, don't mean it ain't being measured against a standard. USD debased 90%, against gold, since 2002.

The NY FED Gold Vaults are getting called and we may yet see Tungsten Ben in cuffs with some of Americas finest dragging him off by the collar (if he be lucky).

Germany's political public service employees have finally admitted who has custody of German commons gold.

By law, Germany's political public service employees are quired to audit German gold reserves every 3 years.

It's been 6 years since the last audit.

Germany has at least 60% of it's gold warehoused at the NY FED.

Germany is considering repatriation of it's physical gold as protection against the possibility of currency collapse.

Rumor abound that the couple of thousand tons of German gold held in custody by the NY FED (i used to think Germans were smart)  has been co-mingled with other gold (and very probably, varying amounts of tungsten) while in the NY FED vaults.

Germany To Review Bundesbank Gold Reserves In Frankfurt, Paris, London And Federal Reserve Bank Of New York (Mar 8)
German lawmakers are to review Bundesbank controls of and management of Germany's gold reserves. Parliament's Budget Committee will assess how the central bank manages its inventory of Germany's gold bullion bars that are believed to be stored in Frankfurt, Paris, London and the Federal Reserve Bank of New York, according to German newspaper Bild.
The German Federal Audit Office has criticised the Bundesbank's lax auditing and inventory controls regarding Germany's sizeable gold reserves - 3,396.3 tonnes of gold or some 73.7% of Germany's national foreign exchange reserves.
The German lawmakers are following in the footsteps of U.S. Presidential candidate Ron Paul who has long called for an audit of the U.S. gold reserves.

It is believed that some 60% of Germany's gold is stored outside of Germany and much of it in the Federal Reserve Bank of New York.

The Bank of New York Newswire is an interesting lister..

Dude, Where’s My Gold?

At the end of January Venezuela received the last of their 160 tonnes of repatriated gold reserves. Many, including some of the country’s own economists thought Chavez was mad to bring back the gold; that it was an expensive and unnecessary operation.

But now it seems distance makes the heart grow fonder for other countries as well with reports of both Germany and Switzerland on the verge of requesting the return of their gold from the United States. This is not surprising considering both countries were at the forefront of the increased gold demand in Europe in 2011. Germany particularly saw an increased demand for physical bars in allocated accounts.
... The Audit Office is said to have buckled to the pressure of German citizens and politicians interested to know where their gold is.

This is gonna be real interesting.

Wed, 03/14/2012 - 10:32 | 2254021 Kobe Beef
Kobe Beef's picture

Based on my reading of GATA's investigation into Central Bank/Bullion Bank decades-long collusion in gold leasing arrangements, I would be extremely surprised to see Germany's gold in Good Delivery. He who panics first, panics best. Way to go University of Texas & Hugo Chavez!

Tue, 03/13/2012 - 23:09 | 2252885 flacon
flacon's picture

But at least Greece has a greater negative less-radiation potential. Japan is increased in negative unrisk potential. Or to put it more mildly Japan is less more unrisky than Greece because of dis-funded unfunded liabilities. Japan is better to invest in than Greece because of dis-risk is lower than Greece. Disinflation is lower than Greece, and dis-un-employment is less than Greece. 


Please un-disinvest in Japan. 



Tue, 03/13/2012 - 23:24 | 2252929 Manthong
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Do yellow swans have black body suits?

Wed, 03/14/2012 - 00:09 | 2252994 UP Forester
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I think those are Ninjas....

Wed, 03/14/2012 - 01:11 | 2253058 Manthong
Manthong's picture

Ah so.. yellow swan wear black Ninja suit.

Wed, 03/14/2012 - 00:48 | 2253046 Harbourcity
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If they can't devalue the currency by printing it they'll undermine it's confidence.

Wed, 03/14/2012 - 02:49 | 2253168 SAT 800
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Kinoshita says; We kino Shita all ovah ouself. now get bad taste sushi.

Wed, 03/14/2012 - 02:57 | 2253177 bluebare
bluebare's picture

brack sran

Tue, 03/13/2012 - 21:38 | 2252652 EndTheMedia
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Fiscal “liberals” have an inability to understand cause and effect. They often confuse the two and end up forcing the “fox to guard the hen house”. http://bit.ly/zATMvw

Tue, 03/13/2012 - 22:12 | 2252752 HardlyZero
HardlyZero's picture

Cause and Effect.

They are still alive, so maybe there is a reason and there will be a resolution.

Its just impossible to see one at this time.


Wed, 03/14/2012 - 06:51 | 2253289 valley chick
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and yet another earthquake this morning... 6.8 on the scale...

Tue, 03/13/2012 - 21:40 | 2252654 Yen Cross
Yen Cross's picture

 Ok now I'm cutting the last 2 GBP/JPY shorts for a break even!

  PSYCHE! C Ya in Europe!

Tue, 03/13/2012 - 21:40 | 2252655 Clockwork Orange
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Farcus Magnus

Tue, 03/13/2012 - 21:59 | 2252713 HardlyZero
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I have heard that was theoretically impossible given that it failed the first time.

Should we try it again, or should we call Godzilla or.... ?

Is Ultra-Man still available ?  Have Hiroto contact him immediately !

Tue, 03/13/2012 - 22:03 | 2252723 UP Forester
UP Forester's picture

Voltron to the rescue....

Driven there by Speed Racer.

Tue, 03/13/2012 - 22:09 | 2252737 Captain Kink
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Ultra-Man was the best! +10 for making me remember...  good times.

Tue, 03/13/2012 - 22:54 | 2252865 Financial Newbie
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I believe it's "Godzirra".

From our friends at Urban Dictionary:


  1. Godzirra
    Something the Japanese scream when terrified beyond all reason
    "Oh, I got teetek.  Oh, I got sprashed by mud.  How dis day get any worse... oh emai egot! It's Godzirra!!!"
  2. Godrizza
    How Japanese people pronounce "Godzilla".  Hey, it's hard to pronounce those "L"s.
    White person: "Oh my god, it's Godzilla... run!!!"
    Japanese person: "Run, it Godzirra!!!" 




PS - all you guys are racsits.

Tue, 03/13/2012 - 21:41 | 2252657 Seasmoke
Seasmoke's picture

thats going to be a hard island to live on

Tue, 03/13/2012 - 22:19 | 2252767 HardlyZero
HardlyZero's picture

Moving Tokyo will be challenging.

Maybe they can instead break off a piece of the island with a properly located score line through the major techtonic plate, and a thermo-nuclear detonator !

Tue, 03/13/2012 - 21:42 | 2252660 The trend is yo...
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This too shall pass ... i mean... be ignored

Tue, 03/13/2012 - 21:44 | 2252666 dark pools of soros
dark pools of soros's picture

buybacks are the new plunge protection teams...

Tue, 03/13/2012 - 22:22 | 2252780 HardlyZero
HardlyZero's picture

What if every Japanese resident bought CDSs against Japan.

Would that provide sufficient floatation mechanism or levitation for everyone on the island ?

Perhaps it is time to invoke the forbidden codex !!

Tue, 03/13/2012 - 21:44 | 2252667 Alexandros
Alexandros's picture

Global Debt Crisis

The greatest private fraud of human history.

Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?



Tue, 03/13/2012 - 23:23 | 2252927 Vic Vinegar
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The first time one hears about the Bilderberg group they should get pissed.  C'mon New York Times - I thought you guys were all about printing the news that was fit to print.

Then one looks into it and sees the B'bergs are much ado about nothing.  Sure it still sucks that the American MSM won't cover it, but most of us don't care about the MSM anyway.  Just one more reason to ignore those assholes.

As for your site, it's a fuking joke.  Certainly you will complain about "the Jews" some more.  Whatever gets you through the night.

Tue, 03/13/2012 - 21:47 | 2252672 Atomizer
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The ten components of The Conference Board Leading Economic Index® for Japan include:

Operating Profits
Dwelling Units Started
Business Failures
Index of Overtime Worked
Stock Prices (TOPIX)
Six-Month Growth Rate of Labor Productivity
Tankan Business Conditions Survey
Money Supply
Yield Spread
New Orders for Machinery and Construction


Tue, 03/13/2012 - 21:47 | 2252674 prains
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Tue, 03/13/2012 - 21:49 | 2252680 mophead
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OMG OMG! Japan is going down WORSE than Greece! I guess I'll have to short the markets again.

Tue, 03/13/2012 - 21:54 | 2252696 Jake88
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If you still have cash you might want to go long.

Tue, 03/13/2012 - 23:49 | 2252964 CrashisOptimistic
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Care to guess what % of Japanese government spending this year will be tax revenue and what part borrowed?

51/49.  49% of all of the year's spending will be new debt.

The US number is 65/35.

Tue, 03/13/2012 - 21:49 | 2252681 Yen Cross
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Tue, 03/13/2012 - 22:41 | 2252836 UP Forester
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Tue, 03/13/2012 - 22:44 | 2252842 HardlyZero
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Mothra !

Tue, 03/13/2012 - 23:12 | 2252907 UP Forester
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Tue, 03/13/2012 - 23:53 | 2252972 perchprism
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Uruk Hai!

Wed, 03/14/2012 - 00:10 | 2252997 UP Forester
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Wed, 03/14/2012 - 00:18 | 2253006 knukles
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Wed, 03/14/2012 - 00:23 | 2253012 prains
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red (f)awn

Wed, 03/14/2012 - 03:02 | 2253183 bluebare
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Who didn't ante?

Wed, 03/14/2012 - 09:40 | 2253704 Kobe Beef
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Do NOT follow this link or you will be banned from the site!