– As BOJ Holdings Surpass ¥100 Trillion, It Gets An Ultimatum: “Stop Being Independent Or Lose Your Independence” (ZeroHedge, Dec 23, 2012):
2013, which is still a week away, is already off to a ‘crazy pills’ bang. Because while the bulk of the politipunditry is shocked, shocked, that it was dead wrong about the Cliff outcome which is now set to ram the country front and center on January 1, the most amusement appears to be emanating from the land of the rising sun, where the brand new PM just issued an ultimatum to the central bank, which can be summarized as follows: stop being independent, or we will change the laws and take away your independence.
This is merely the latest attempt by a government – which obviously knows better than the collective known as the market (or was the market before central-banks decided to make a mockery of the term) to define both fiscal and monetary policy, the way Goldman Sachs has been able to do for decades in the US, Europe, and now UK.
What, however, guarantees the fun factor this time is that Abe, as the FT summarizes, already had a stint in control back in 2006-2007 which “ended amid ill health, scandal and policy failure.” Specifically, it ended in a bout of explosive diarrhea as we reported previously (no seriously) which was the scapegoat to “justify” Abe’s early retirement. So where Abe failed, with limited intervention, he will now succeed with virtually unlimited control over both the fiscal and monetary apparatus. One can now see where the amusement possibilities are virtually unlimited.
From the FT:
Read moreAs BOJ Holdings Surpass ¥100 TRILLION, It Gets An Ultimatum: ‘Stop Being Independent Or Lose Your Independence’