New Japan PM Shinzo Abe Visits Fukushima Nuclear Plant


New Japan PM visits tsunami-wrecked nuclear plant (Guardian/AP, Dec 29, 2012):

Newly installed Japanese Prime Minister Shinzo Abe visited the tsunami-devastated Fukushima Dai-Ichi nuclear plant on Saturday as his government reconsiders plans to eventually phase out the use of atomic energy.Donning protective gear, Abe took a bus tour of the plant — site of the worst nuclear accident since the 1986 Chernobyl disaster — and greeted workers at its emergency operations center in Okuma town on Japan’s northeastern coast.

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Japan: Presenting Shinzo Abe’s ‘Super-Secret’ Devaluation Plan – Double-Down

Presenting Abe’s ‘Super-Secret’ Devaluation Plan – Double-Down (ZeroHedge, Dec 28, 2012):

Much has been made of newly appointed uber-easer Abe’s plans to weaken the JPY by any means possible. Since the global financial crisis began in early 2008, USDJPY has tracked remarkably closely with the ratio of Federal Reserve assets to Bank of Japan assets – as the currency wars escalated. Assuming the Fed proceeds with its planned QE3/4 $1tn expansion, then BoJ assets would need to expand by around JPY100tn to meet this target. The current BoJ holdings of JGBs just crossed JPY100tn – so this new printing is double the current holdings and considerably more than double the planned JPY44tn purchases for the year. Good luck with that given the expected JGB issuance this year is only around JPY44tn and good luck persuading anyone that the BoJ is not directly funding the government in the ultimate reacharound. As the Fed monetizes 1 year of Treasury issuance so the BoJ has to monetize over 2 years of JGB issuance – sustainable?

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As BOJ Holdings Surpass ¥100 TRILLION, It Gets An Ultimatum: ‘Stop Being Independent Or Lose Your Independence’

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’