Japan not to be out done (global QE watch)

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The Nikkei crash has spilled over to Europe this morning. A new kind of contagion...

EUR/CHF is down 1% intraday in a flight to safety
 

More: http://www.bloomberg.com/news/2013-...-overwhelmed-by-investor-sales-bass-says.html
 
Looks like Rome Tokyo is burning...


More: http://www.zerohedge.com/news/2013-05-24/despite-promises-japanese-market-chaos-continues
 
Reading the following nice long rant about economic issues around the world, I was struck by this quote:
"The Japanese government spends 24% of its annual revenues on interest expense, but only because the average interest rate is quite low. If interest rates rise to 2.2%, their interest expense will consume 80% of the government revenues."
http://www.deviantinvestor.com/4587/4587/

Thinking that couldn't be accurate, I looked around a bit..

30 year Japanease governement bonds for less than 2 percent (10 year under 1%!):
http://www.bloomberg.com/markets/rates-bonds/government-bonds/japan/

Even with those low rates, the Japanese government does indeed spend almost a quarter of it's expenditures on nation debt:
http://seekingalpha.com/article/1462701-worrisome-trends-in-japan-s-government-spending

What little bump in the road is going to turn Japan into a super Greece?
 
Despite massive money printing, Japan's market is crashing:
http://finance.yahoo.com/blogs/brea...central-bank-intervention-123028344.html?vp=1

"Thursday saw Japan's Nikkei 225 (^N225) benchmark drop another 6.4%. The loss is the equivalent of nearly 1,000 Dow points. The Nikkei has lost more than 1/5th of its value since May 23rd. A 20% drop fits the technical definition of a Bear Market but don't be fooled. The Nikkei isn't slumping into bear territory. It's crashing."

"Japanese stocks are collapsing despite active and massive intervention by its Central Bank. The Nikkei has now given back all but a fraction of the explosive gains made in the wake of Bank of Japan Governor Haruhiko Kuroda's public commitment to do whatever it takes to jump start the world's third largest economy."

"So where does money go when all other markets fail? It goes to "risk-free" government securities. That means U.S. paper. The U.S. is the only non-emerging industrialized nation on earth with reliably positive GDP growth. The yield is almost nothing but that looks pretty good compared to the risk/reward profile of an investment in Japanese stocks."
 
I am slightly skeptical about the positive GDP numbers. Feels like cooked books to me.
 
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Well done Shinzō Abe! :clap:
Abenomics might not fix Japan but it seems to have created a 300% rise in pysical gold sales in Japan


Tanaka Kikinzoku Kogyo K.K., Japan’s biggest gold retailer, said today its sales rose threefold in the second quarter from the previous three months, as lower prices attracted consumers.

(That's gold retailer, not jewelry retailer, they sell gold coins, bars etc. http://gold.tanaka.co.jp/english/products/index.html)

The third largest economy in the world tripling their gold buying, yet another trend that can't possibly be sustainable.

http://www.bloomberg.com/news/2013-...ged-as-investors-weigh-bernanke-comments.html

Edit: (The fall in the gold price also helped demand as well obv.)
 

http://www.zerohedge.com/news/2013-10-28/abenomics-one-year-later

The Japanese masses appear to be as mesmerized by their stock market as a false idol of the economy as Americans are with the NYSE. The BoJ is stuck in the same trap as the Fed though and can't afford to stop or slow down their debasement without crashing their bubble economy. Bubbles gonna grow until they pop.
 

http://globaleconomicanalysis.blogspot.com/2013/12/bank-of-japan-vows-to-stick-with-easy.html
 

http://finance.yahoo.com/news/bank-japan-more-confident-recovery-213529537.html?l=1


http://globaleconomicanalysis.blogspot.com/2014/05/bank-of-japan-seeks-to-end-stimulus.html
 
At some point, there has to be a reckoning, it is inevitable. When that day comes, it will be a waterfall event, it will spread to every fiat currency and wipe out any nation without something of substance to back their monetary system. It is only a matter of time. People have grown weary of the constant devaluation of their monies and perpetual inflation.
 

More: http://globaleconomicanalysis.blogspot.com/2014/11/mystery-of-unexpected-japan-slides-into.html
 

More: http://www.zerohedge.com/news/2015-...t-bond-buying-former-boj-official-okina-warns


More: http://www.zerohedge.com/news/2015-03-03/boj-losing-control-demand-wanes-jgbs

Get ready to grab a chair, sounds like the music may stop soon.

 
The situation with Japan must be getting serious. First we had a former BoJ member issuing warning statements. Now we get a current BoJ member echoing the same refrain:
More: http://www.zerohedge.com/news/2015-03-05/mutiny-boj-board-member-warns-dire-consequences
 
* bump *


https://www.reuters.com/article/us-...d-buying-at-next-meeting-nikkei-idUSKCN2252GY

brrrrrrrrrr
 
aw come, on its only a discussion they are having

they would never be that stupid .......... (-;
 
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