Bank Of Japan’s 10 Trillion Equity Portfolio “Not Large” Says Bank Of Japan

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Bank Of Japan’s 10 Trillion Equity Portfolio “Not Large” Says Bank Of Japan (ZeroHedge, March 25, 2015):

As we’ve discussed twice this month, the world has now officially given up any pretensions that Japan’s elephantine QE program isn’t underwriting the rally in Japanese stocks. Not only is the Bank of Japan buying ETFs, they’re targeting their purchases to (literally) ensure that stocks can’t fall by stepping in when things look weak at the open. Unfortunately, Kuroda looks set to run up against the extremely inconvenient fact that while, in his lunacy, he can print a theoretically unlimited amount of money, the universe of purchasable ETFs is limited and so eventually, the BoJ will own the entire market. Here’s what we said last week:

As it turns out, the central bank may now run into the same inconvenience in its efforts to control the stock market that it encountered on the way to monopolizing the JGB market: there’s only so much out there to buy. Here’s more from Bloomberg: 

BOJ held 3.85t yen ($32.0b) of ETFs at end-2014 and plans to boost these holdings by 3t yen per year; at this pace, the current market value of 11.5t yen in ETFs would be entirely bought by BOJ by end-2017, data compiled by Bloomberg show.

You read that correctly — the Bank of Japan will own the entire Japanese ETF market within about 30 months. So with all of the JGBs marked for purchase and with all of the ETFs exhausted, there’s only one place to go next: individual stocks.

Read moreBank Of Japan’s 10 Trillion Equity Portfolio “Not Large” Says Bank Of Japan

Japanese Pension Funds Dive Into Stocks To “Increase Risk-Taking”

Japanese Pension Funds Dive Into Stocks To “Increase Risk-Taking” (ZeroHedge, March 19, 2015):

One thing we’ve discussed on a number of occasions lately is the fact that pension funds the world over are increasingly adopting the same behavior as other investors in a world characterized by artificially suppressed yields: they’re shifting to riskier assets. In the case of US public sector pension funds this is a necessity because assumptions about investment rates dictate the discount rate used to calculate the present value of liabilities and so as soon as you admit you can’t make 8% when risk-free assets are yielding less than 2% in the US and close to or less than 0% in other locales, you effectively become even more underfunded than you already were. The solution is to take more risks in order to justify return expectations and in the US the percentage of funds’ capital dedicated to equities has risen from under 30% in the mid-eighties to as high as 60% more recently while the fixed income allocation has steadily fallen.

As you might expect, Japanese public pension plans are also feeling the heat as the BOJ has driven yields on JGBs into the ground by planning to monetize the entirety of gross issuance. The result has been a truly epic shift out of domestic government bonds. As Bloomberg reports, Japan’s Government Pension Investment Fund sold nearly $50 billion in JGBs in Q4, opting instead to chase after higher returns in the stock market:

Read moreJapanese Pension Funds Dive Into Stocks To “Increase Risk-Taking”

Bank Of Japan’s Plunge Protection Desperation: “May Buy Individual Stocks”

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Bank Of Japan’s Plunge Protection Desperation: “May Buy Individual Stocks” (ZeroHedge, March 19, 2015):

Earlier this month, the BoJ surveyed 40 dealers and discovered something shocking: buying the entirety of JGB gross issuance has had a rather dramatic effect on liquidity. In fact, two thirds of the firms who participated reported having “some or a lot” of problems and described bid-asks as “not very tight.” Today, an internal report from the central bank indicates officials are slowly coming to accept the fact that their actions have consequences although as you can see from the following, the fact that the BoJ is literally buying all of the bonds is still low on the list of factors the central bank figures might be negatively affecting liquidity…

Via Bloomberg: 

Read moreBank Of Japan’s Plunge Protection Desperation: “May Buy Individual Stocks”

Plunge Protection Exposed: Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop

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Plunge Protection Exposed: Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop (ZeroHedge, March 11, 2015):

Since 2010, The Bank of Japan has ‘openly’ – no conspiracy theory here – been a buyer of Japanese stock ETFs. Their bravado increased as the years passed and Abe pressured them from their independence to ‘show’ that his policies were working to the point that in September 2014, The BoJ bought a record amount of Japanese stock ETFs taking its holdings to over 1.5% of the entire market cap, surpassing Nippon Life as the largest individual holder of Japanese stocks. However, as WSJ reports,The BoJ has now gone full intervention-tard – buying Japanese stocks on 76% of the days when the market opened lower.

As The Wall Street Journal reports,

The Bank of Japan’s aggressive purchasing of stock funds has helped Japanese shares climb to multiyear highs in recent months. But some within the central bank are growing uncomfortable about the fast-paced rally and the bank’s own role in fueling it.

Read morePlunge Protection Exposed: Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop

Presenting The Buyers Of More Than 100% Of New German And Japanese Bond Issuance

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Presenting The Buyers Of More Than 100% Of New German And Japanese Bond Issuance (ZeroHedge, March 9, 2015):

We already know that the Bank of Japan will monetize 100% or just over of all Japanese gross sovereign bond issuance (source). As for Germany, on a run-rate basis, and assuming allocation based on the abovementioned capital key, it means that for the next 12 month period, assuming no major funding changes in Germany, the ECB will swallow more than a whopping 140% of gross German issuance! Or, said otherwise, the entities who will buy more than all gross German and Japanese issuance for the next 12 months, are the ECB and the Bank of Japan, respectively.

Read morePresenting The Buyers Of More Than 100% Of New German And Japanese Bond Issuance

Japan Now Spends 43% Of Tax Revenue To Pay Interest On Debt

I would highly recommend you NOT to visit Japan (for at least the next 250,000 years).

Japan is doomed … on all levels.


Japan projects to spend 43% of tax revenue just to pay interest on the debt (Sovereign Man, March 5, 2015):

It’s entirely possible that we may see interstellar space travel in our lifetime. And what a dream that would be.

But in the meantime, for anyone that’s losing patience with space technology, I would recommend you visit Japan. Because for anybody that has been here, this place is as close as it gets to being on another planet.

Japan is a land of irony and dichotomy. It is one of the most conservative cultures in the world, while simultaneously being one of the most perverted.

Read moreJapan Now Spends 43% Of Tax Revenue To Pay Interest On Debt

Mutiny At The Bank Of Japan: Board Member Warns Of “Dire Consequences”

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Mutiny At The BoJ: Board Member Warns Of “Dire Consequences” (ZeroHedge, March 5, 2015):

The BoJ’s Takahide Kiuchi warns of “dire consequences” if the central bank continues to blatantly disregard the “side effects” of QE and also expresses skepticism about the ability of further asset purchases to boost inflation, going so far as to suggest that the BoJ’s prediction of 2% inflation by mid-2016 is nothing more than a fairytale.

‘We Just Need To Print More Money’ Bank Of Japan’s New Board Member Clarifies Endgame

Yeah, right.

And radiation is good for you!

100-EinsteinInsanity


“We Just Need To Print More Money” Bank Of Japan’s New Board Member Clarifies Endgame (Zerohedge, Jan 6, 2015):

The Abe administration nominated a major proponent of reflationary (inflationary) monetary policy to the central bank’s board, buttressing Governor Haruhiko Kuroda’s efforts to save the nation from the dread of deflation. As Bloomberg reports, economist Yutaka Harada, who will replace Ryuzo Miyao, has said Japan can beat deflation by printing money in a 2013 book “Reflationary Policy Revives Japan’s Economy.” So far that is not working so try harder… “The nomination is a good news for Kuroda… he will keep a majority on the board and win what he wants.” Why such good news? As deputy director at the finance ministry’s Policy Research Institute, Harada exclaimed, “we just need to print money.”

Read more‘We Just Need To Print More Money’ Bank Of Japan’s New Board Member Clarifies Endgame

Central Planners Are (NOT) In A State of Panic

In my opinion the elitists are doing everything through their (idiotic) puppets like Obama, Yellen, Abe etc. to cause an epic financial/economic collapse.

They control the banks, the media, the governments and most corporations.

If you doubt that, then you better start to follow the money and study the Rothschilds and their agents (the Schiffs, the Warburgs, the Rockefellers, the Morgans etc.).

The elitists were behind the French revolution (like it or not).

They were behind the Russian revolution.

They were behind WW I & WW II and now they a have the greatest economic/financial collapse in world history, civil war and WW III planned for us.

Never think that just because that their puppets act like f****** idiots that they haven’t planned all of this meticulously.

Again, never misunderestimate the elitists no matter how dumb their puppets actions may appear to you on the surface.

Nobody would play chess against Kasparov, Karpov, Fischer at the height of their creative power and underestimate their moves.

The people are playing chess against the elitists, but can’t even see the full board, nor all the moves by the elitists.

The only reason the people call their moves stupid is because that makes them feel better, when in reality they do not understand what is planned for them.


Central Planners Are In A State of Panic (Peak Prosperity, Nov 6, 2014):

Japan’s black swan flaps its wings

The central planners are in a state of fear and panic.  They are trying everything and anything to create market validation for their policies, watching with trepidation as their favored economic metrics fail to respond to all of their frenzied efforts.

They are so far over the tips of their skis right now that there’s nothing they won’t do. They’ve summarily thrown granny under the bus because they have this idea that negative real interest rates are the cure.  The cure for what?  The massive amounts of debts and imbalances their prior policies caused.  So savers are punished in the pursuit of policy.  You know, ‘for the greater good’ and all that.

They’ve spurred the greatest wealth gap ever in US history, greater even than at the extremes of the Great Depression, apparently without the slightest concerns for Plutarch’s ancient admonition that “An imbalance between rich and poor is the oldest and most fatal ailment of all republics.”

Read moreCentral Planners Are (NOT) In A State of Panic

It’s Currency War! – And Japan Has Fired The First Shot

SUICIDE-GUN


It’s Currency War! – And Japan Has Fired The First Shot (Economic Collapse, Nov 3, 2014):

This is the big problem with fiat currency – eventually the temptation to print more of it when you are in a jam becomes too powerful to resist.  In a surprise move on Friday, the Bank of Japan dramatically increased the size of the quantitative easing program that it has been conducting.  This sent Japanese stocks soaring and the Japanese yen plunging.  The yen had already fallen by about 11 percent against the dollar over the last year before this announcement, and news of the BOJ’s surprise move caused the yen to collapse to a seven year low.  Essentially what the Bank of Japan has done is declare a currency war.  And as you will see below, in every currency war there are winners and there are losers.  Let’s just hope that global financial markets do not get shredded in the crossfire.

Read moreIt’s Currency War! – And Japan Has Fired The First Shot

Japan’s Monetary Pearl Harbor

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Japan’s Monetary Pearl Harbor  (Of  Two Minds, Nov 2, 2014):

Trying to “fix” a sclerotic, inefficient state-cartel economy by boosting inflation–the ultimate goal of Japan’s Monetary Pearl Harbor– is a self-liquidating path to destruction.

The Bank of Japan’s surprise expansion of financial stimulus strikes me as the monetary equivalent of Pearl Harbor –not in the sense of launching a pre-emptive war (though the move does raise the odds of a global currency war), but in the sense of a leadership pursuing a Grand Strategy to the point of self-destruction because they have no alternative within their intellectual and political framework.

The ‘Fragile’ Potemkin Stock Market Conceals A Post-Industrial Slum

Signs and Wonders (Kunstler, Nov 3, 2014):

“Holy smokes,” Janet Yellen must have barked last week when Japan stepped up to plug the liquidity hole left by the US Federal Reserve’s final taper trot to the zero finish line of Quantitative Easing 3. The gallant samurai Haruhiko Kuroda of Japan’s central bank announced that his grateful nation had accepted the gift of inflation from the generous American people, which will allow the island nation to fall on its wakizashi and exit the dream-world of industrial modernity it has struggled through for a scant 200 years.

Read moreThe ‘Fragile’ Potemkin Stock Market Conceals A Post-Industrial Slum

The Experiment That Will Blow Up The World

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The Experiment that Will Blow Up the World (Acting Man, Oct 31, 2014):

The BoJ Goes Even Crazier

It has been clear for a while now that the lunatics are running the asylum in Japan, so perhaps one shouldn’t be too surprised by what happened overnight. Bloomberg informs us that Kuroda Jolts Markets With Assault on Deflation Mindset.

The policy hasn’t worked so far, in fact, it demonstrably hasn’t worked in Japan in a quarter of a century. Therefore, according to the Keynesian mindset, we need more of it. Mr. Kuroda therefore delivered a surprise spiking of the punchbowl that immediately impoverished Japan’s consumers further by causing a sharp decline in the yen:

Read moreThe Experiment That Will Blow Up The World

And, So It Begins … The Doomsday Machine Has Been Unleashed In Tokyo

And, so it begins………….. (ZeroHedge, Nov 1, 2014):

doomsday_machine_ortho_by_unusualsuspex-d6x8mse

Courtesy of the StealthFlation Blog

By eviscerating the U.S. Bond market, they have completely destroyed the time value of money.  Thus, there no longer exists a viable and productive term deposit on savings.   

Read moreAnd, So It Begins … The Doomsday Machine Has Been Unleashed In Tokyo

The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging

The BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging (David Stockman’s Contra Corner, Oct 31, 2014):

This is just plain sick. Hardly a day after the greatest central bank fraudster of all time, Maestro Greenspan, confessed that QE has not helped the main street economy and jobs, the lunatics at the BOJ flat-out jumped the monetary shark. Even then, the madman Kuroda pulled off his incendiary maneuver by a bare 5-4 vote. Apparently the dissenters – Messrs. Morimoto, Ishida, Sato and Kiuchi – are only semi-mad.

Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year – a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%.

Read moreThe BoJ Jumps The Monetary Shark – Now The Machines, Madmen And Morons Are Raging

The Halloween Yen Massacre Sends Market To All-Time Highs

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The Halloween Yen Massacre Sends Market To All-Time Highs (ZeroHedge, Oct 31, 2014)

Related info:

What The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON

Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High – Nikkei Futures Halted Limit Up (+1100) As USDJPY Tops 112

What The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON

Charting Banzainomics: What The BOJ’s Shocking Announcement Really Means (ZeroHedge, Oct 31, 2014):

Still confused what the BOJ’s shocking move was about, aside from pushing the US stock market to a new record high of course? This should explains it all: as the chart below show, as a result of the BOJ’s stated intention to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month it means the BOJ will now soak up all of the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month.

In other words. The Bank of Japan’s expansion of record stimulus today may see it buy every new bond the government issues.

This is what full monetization looks like.

BOJ expansion chart

More from Bloomberg:

Read moreWhat The BOJ’s Shocking Announcement Really Means: FULL MONETIZATON

Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High – Nikkei Futures Halted Limit Up (+1100) As USDJPY Tops 112

The Japan stock market celebrates quantitative easing, also being called the nuclear option.


Shocking Bank Of Japan Trick And QE Boosting Treat Sends Futures To Record High (ZeroHedge, Oct 31, 2014):

Two days ago, when QE ended and knowing that the market is vastly overstimating the likelihood of a full-blown ECB public debt QE, we tweeted the following: “It’s all up to the BOJ now.” Little did we know how right we would be just 48 hours later. Because as previously reported, the reason why this morning futures are about to surpass record highs is because while the rest of the world was sleeping, the BOJ shocked the world with a decision to boost QE, announcing it would monetize JPY80 trillion in JGBs, up from the JPY60-70 trillion currently and expand the universe of eligible for monetization securities. A decision which will forever be known in FX folklore as the great Halloween Yen-long massacre.


Nikkei Futures Halted Limit Up (+1100) As USDJPY Tops 112 (ZeroHedge, Oct 31, 2014):

 Bwuahahahaha… Nikkei futures halted limit up – over 1100 points post-BoJ (+1400 post-FOMC) as USDJPY tops 112 (up 4 handles post-FOMC) to its highest since Jan 2008.

Bank of Japan Reaction Context: Nikkei 225 Is Up 1000 Points In 7 Hours (ZeroHedge, Oct 31, 2014):

ou know the world’s financial markets have become farce when the broad Nikkei 225 stock market of Japan rises 1000 points in 7 hours… The meme that stock ‘markets’ move on fundamentals not central bank liquidity is officially dead. Let that sink in for a moment…

How Japanese Hyperinflation Starts (In One Chart)

How Japanese Hyperinflation Starts (In 1 Chart) (ZeroHedge, Oct 21, 2014):

The Japanese Yen’s real effective exchange rate (REER) has collapsed to the weakest since 1982, according to Mitsubishi UFJ Morgan Stanley Securities. Simply put, REER is a trade-weighted measure of Yen strength (or weakness) against, in this case, 59 trading partners; and as the nation posts an unprecedented 27th straight month of trade deficits [43rd straight month of Seasonally-adjusted trade deficits], Bloomberg reports MUFJ indicates “a structural shift” has taken place.

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As a reminder, the Real Effective Exchange Rate (REER) is:

Read moreHow Japanese Hyperinflation Starts (In One Chart)

Japanese Stocks Tumble After BoJ Bond-Buying Operation Fails For First Time Since Abenomics

Japanese Stocks Tumble After BoJ Bond-Buying Operation Fails For First Time Since Abenomics (ZeroHedge, Oct 17, 2014):

Having rotated their attention to the T-bill market in Japan (after demand for the Bank of Japan’s cheap loans disappointed policymakers) in an effort to ensure enough freshly printed money was flushed into Japanese markets, the BoJ now has a major problem. For the first time since QQE began, Bloomberg reports the BoJ failed to buy all the bonds they desired. Whether this is investors unwilling to sell (preferring the safe haven than stocks or eu bonds) or that BoJ has soaked up too much of the market (that dealers now call “dead”) is unclear. Japanese stocks – led by banks – are sliding as bond-demand sends 5Y yields (13bps) to 18-month lows.

BoJ Invisible Hand (Briefly) Rescues Nikkei From Sub-15,000 Plunge (Again)

BoJ Invisible Hand (Briefly) Rescues Nikkei From Sub-15,000 Plunge (Again) (ZeroHedge, Oct 12, 2014):

UPDATE: That didn’t last long… NKY back under 15k as JPY collapses

Heavy volume selling in Nikkei futures at the open sent the index down over 200 points and broke the oh-so-crucial 15,000 line. It appears – just as in August that 15,000 is the BoJ’s line in the sand as a miracle buyer turned up and lifted the index all the way back to 15,000 (whiule JPY remained lower and US futures saw no bounce). Of course, for those who prefer to ignore the fact that the BoJ is almost the biggest holder of Japanese stocks in the world and bought more stock ETFs than ever before in August, this is a clear signal of BTFD’ers back to save the world. For the rest of the sane rational fact-checking market participants, that ‘know’ the BoJ’s trigger to buy is a weak morning session, we wonder how much of this futures ramp is front-running… that will fade as JPY is not supportive at all.

What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)

Related info:

‘Japan Has No Alternative But To Print And Print And Print’ (Chart Of The Day)


What Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan) (Testosterone Pit, Oct 23, 2013):

Hideo Hayakawa, former Bank of Japan chief economist and executive director, set the scene on Wednesday when he discussed the BOJ’s ¥7-trillion-a-month effort to water down the yen by printing money and gobbling up Japanese Government Bonds. It wants to achieve what is increasingly called “2% price stability,” a term that must be a sick insider joke played on the Japanese people. He warned that if these JGB purchases are “perceived as monetization“ of Japan’s out-of-whack deficits, it would drive up long-term JGB yields “to 2% to 3%.” Up from 0.60% for the 10-year JGB. “But once interest rates start rising, they would overshoot,” he said. So maybe 4%?

He’d set the scene for the Bank of Japan’s 81-page semiannual Financial System Report, released the same day. Buried in Chapter V, “Risks borne by financial intermediaries,” is a gorgeous whitewash doozie: if interest rates rise by 1 percentage point, it would cause ¥8 trillion ($82 billion) in losses across the banking system.

Read moreWhat Will It Take To Blow Up The Entire Japanese Banking System? (Not Much, According To The Bank of Japan)

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment (Economic Collapse, Aug 9, 2013):

How much is 1,000,000,000,000,000 yen worth?  Well, a quadrillion yen is worth approximately 10.5 trillion dollars.  It is an amount of money that is larger than the “the economies of Germany, France and the U.K. combined“.  It is such an astounding amount of debt that it is hard to even get your mind around it.  The government debt to GDP ratio in Japan will reach 247 percent this year, and the Japanese currently spend about 50 percent of all central government tax revenue on debt service.  Realistically, there are only two ways out of this overwhelming debt trap for the Japanese.  Either they default or they try to inflate the debt away.  At this point, the Japanese have chosen to try to inflate the debt away.  They have initiated the greatest quantitative easing experiment that a major industrialized nation has attempted since the days of the Weimar Republic.  Over the next two years, the Bank of Japan plans to zap 60 trillion yen into existence out of thin air and use it to buy government bonds.  By the time this program is over, the monetary base in Japan will have approximately doubled.  But authorities in Japan are desperate.  They know that the Japanese debt bomb could set off global panic at any time, and they are trying to find a way out that will not cause too much pain.

Read moreA Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

Gold is a Crap Investment – Unless …

From the article:

“Gold is the absolute best and only bet against currency collapse—which is coming, courtesy of central bank irresponsibility.”

PHYSICAL gold and silver are the absolute best and only bet against the greatest financial/economic collapse in known world history that is well on its way.

Food, water, a (self-sufficient, fully equipped) remote farm and like-minded friends are still more important.

This is the Greatest Depression.

FYI.


Gold is a Crap Investment—Unless… (Gonzalo Lira, July 15, 2013):

About gold as an investment, Barry Ritholz said it best:

This is not to say gold is not affected by Macro issues. But that is very different than saying Gold has a fundamental value, an intrinsic worth. It does not. [. . .] Gold is not, and can never be, an investment. It has no true intrinsic value, no cash flow, no earnings, no coupon[,] no yield. What people call fundamentals are nothing more than broad macro analysis (and how have your macro funds done lately?). Gold is the ultimate greater fool trade, with many of its owners part of a collective belief theory rife with cognitive errors and bias. [bold emphasis in the original]

Read moreGold is a Crap Investment – Unless …