Monetization
Japan QE Limit Approaching As Goldman Says BoJ Risks Losing Crediblity
Submitted by Tyler Durden on 04/10/2015 19:25 -0500Is the BoJ's back against the wall? We certainly think so as the evidence increasingly supports the notion that the central bank is bumping up against the limits of accommodative monetary policy and may soon be headed — as we've variously predicted —for "failed nation" status.
Gold Jumps After India Reveals Import Surge
Submitted by Tyler Durden on 04/10/2015 08:22 -0500Gold prices jumped overnight on initial rumors and again in the last hour as Indian officials note that March Gold imports surged to 125 tons (more than double last March's 60 tons). As Reuters reports, Gold imports in the fiscal year 2014/15 ended March 31 jumped to 900 tonnes, up 36% from a year ago. Surging imports are helped by a falling price since the beginning of the year combined with the relaxation of government (capital control) import restrictions, and despite further efforts by the government to "monetize gold."
Japan Admits Fabricating 2014 Wage Growth Data
Submitted by Tyler Durden on 04/03/2015 14:13 -0500At this point calling Japan a failed Keynesian banana republic is an insult to banana republics everywhere.
Breaking the Definintion of Money and Inhibiting Seigniorage (Money Printing) with Asset Backed Bitcoin
Submitted by Reggie Middleton on 04/03/2015 12:01 -0500Taking the gold-backed dollar into the next millenium and imbuing it with all of the attributes of the Bitcoin blockchain.
The U.S. Economy Slows To Stall Speed
Submitted by Tyler Durden on 04/02/2015 08:25 -0500This long-term weakening of the economy is the direct result of financialization and the Federal Reserve's policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates. The U.S. economy is slowing to stall speed--the point when gravity overcomes the lift provided by central bank free money. This deceleration is evident in a number of indicators such as gross domestic product (GDP), which is now at 0% according to the Federal Reserve Bank of Atlanta's GDPNow model.
The 10 Things Germany Needs To Do To Save The Eurozone (And Itself)
Submitted by Tyler Durden on 03/26/2015 10:01 -0500The political pressure on Germany is rising in Europe. The country faces a choice: Continue business as usual or change the strategy? Only the latter option may give it real influence on shaping the future course of economic and political affairs in Europe. Playing defense is the comfortable choice, but it may be the wrong strategy. What needs to be done? Below is a proposal for saving the Eurozone in a way that would safeguard Germany’s interests, too
Some Folks At The Fed Are Lost - No Juice To The Macros, Part 1
Submitted by Tyler Durden on 03/25/2015 12:17 -0500- Bond
- Census Bureau
- fixed
- GAAP
- headlines
- Home Equity
- Housing Bubble
- Housing Prices
- Housing Starts
- Janet Yellen
- Jumbo Mortgages
- Main Street
- Monetary Policy
- Monetization
- Mortgage Backed Securities
- New Home Sales
- PE Multiple
- Reality
- Recession
- recovery
- Russell 2000
- Salient
- St Louis Fed
- St. Louis Fed
- Wall Street Journal
- White House
- Yield Curve
Does it really take purportedly intelligent people six years to see that the macros are not responding? Better still, isn’t it time for the Fed to explain the exact channel by which its interest rate pegging and forward guidance is supposed to be transmitted to the main street economy? After all, if these channels are blocked or ineffective - then its flood of liquidity never leaves the canyons of Wall Street. In that event, the central bank actually functions as a financial doomsday machine, inflating the next financial bubble until it bursts. Then, apparently, its job is to rinse and repeat.
The Next Move For The Fed: "Trial Balloning" QE4
Submitted by Tyler Durden on 03/22/2015 09:28 -0500Sometime after the initially soft Q1 GDP “print” expect a “trial balloon” of more debt monetization [QE4] issued by some FOMC constituent. Naturally this will weaken the dollar and immediately suspend/reverse the Fed’s dollar based concerns articulated earlier in this post. However, this will also serve to “piss” off both Kuroda [BoJ] and Draghi [ECB]…as their heavily depreciated and shorted currencies will, at least initially, sharply reverse course…and the continual game as to which global economic zone can depreciate their currency the fastest is “on”…again.
Visualizing The History Of The World's Yield Curves In Glorious 3-D
Submitted by Tyler Durden on 03/19/2015 16:59 -0500
The Financial Folly Lurking Beneath Yellen’s Patient Lack Of Impatience
Submitted by Tyler Durden on 03/19/2015 13:20 -0500Janet’s Yellen’s pettifogging today about her patient lack of impatience was downright pathetic. Her verbal hair-splitting is starting to make medieval ritual incantations sound coherent by comparison. But unlike the financial media’s dopey dithering about “dot plots”, Yellen at least has something to hide behind all the gibberish. Namely, she and her merry band of money printers are becoming more petrified each month that they will trigger a thundering Wall Street hissy fit if they move to “normalize” interest rates - even as they are slowly beginning to realize that continuance of ZIRP much longer will only intensify the market’s addiction to rampant speculation, free money carry trades and the associated risks to financial stability.
Japan Ties China As America's Largest Creditor As Foreigners Dump A Record Amount Of Treasurys
Submitted by Tyler Durden on 03/16/2015 15:45 -0500Moments ago the January TIC data update was released, and while China continued selling US paper, liquidating another $5.2 billion in January and bringing its new total to the lowest since January 2013, Japan - yes that Japan whose central bank is now moentizing 100% of its own debt issuance because the country is now effectively insolvent and absent constant monetization of its debt it is finished - bought $8 billion in US debt, in the process trying China as America's largest foreign creditor for the first time in history, with both nations holdings $1.239 trillion in US TSYs.
The Full Explanation Of How The ECB Broke Europe's Bond Market
Submitted by Tyler Durden on 03/15/2015 14:44 -0500When even JPMorgan strongly implies that the ECB's QE is about to fail, one short week after it started, now may be a time to panic: "In all, we note the above analysis challenges the ability of the Eurosystem to meet its quantitative target without distorting market liquidity and price discovery."
Bonds Or Stocks: Which Bubble Is Bigger? SocGen Answers
Submitted by Tyler Durden on 03/14/2015 14:51 -0500Rich valuations point to the likelihood of low returns across asset classes. [W]e develop a cross-asset approach to risk premia and implement it across the asset classes. The results show that valuations are rich across the board. This indicates markets may become shaky as we get closer to the first Fed rate hike in nine years.
China's Latest Spinning Plate: 10 Trillion In Local Government Debt
Submitted by Tyler Durden on 03/11/2015 21:10 -0500China is in the midst of attempting to help local governments refinance a mountain of debt, some of which was accumulated off balance sheet via shadow banking conduits at relatively high rates. According to UBS, "Chinese domestic media are saying that the authorities are considering a Chinese "QE" with the central bank funding the purchase of RMB 10 trillion in local government debt."
Euro In Freefall, Dollar Surge Accelerates; Futures Rebound On USDJPY Rise; Greece On The Ropes
Submitted by Tyler Durden on 03/11/2015 05:59 -0500- Bank of Japan
- Bloomberg News
- Bond
- Central Banks
- China
- Copper
- Creditors
- Crude
- Crude Oil
- Equity Markets
- Eurozone
- Finland
- fixed
- France
- goldman sachs
- Goldman Sachs
- Greece
- Gundlach
- headlines
- Italy
- Japan
- Jim Reid
- Monetization
- Natural Gas
- Nikkei
- Price Action
- RANSquawk
- Real estate
- Reuters
- SocGen
- Stress Test
- Wholesale Inventories
While the dollar strength this morning, which has pushed it to a fresh 13 year high and has accelerated the EURUSD plunge to under 1.06 - a drop of over 300 pips since the start of the week - has been a recap of yesterday's trading action, the main difference is that unlike yesterday, the USDJPY has managed to find a strong bid in the overnight session, pushing not only the Nikkei up by 0.4%, but also lifting US equity futures as the entire global marketplace is now merely a sandbox in which the central banks try to crush their currencies as fast as possible.



