Tag Archive: Japan

No Big Thoughts, but Several Smaller Observations

2016-08-01

by

2016-08-01

Notable that as the CRB Index moves lower, MSCI emerging market equities have done well. European banks are retreating after the stress test results. Tokyo elected its first women governor as this seem to be in part a sign of protest against Abe.

Read More »

Richard Koo: If Helicopter Money Succeeds, It Will Lead To 1,500 percent Inflation

2016-07-28

by

2016-07-28

After today's uneventful Fed announcement, all eyes turn to the BOJ where many anticipate some form of "helicopter money" is about to be unveiled in Japan by the world's most experimental central bank. However, as Nomura's Richard Koo warns, central banks may get much more than they bargained for, because helicopter money "probably marks the end of the road for believers in the omnipotence of monetary policy who have continued to press for further...

Read More »

The World’s Central Banks Are Making A Big Mistake

2016-07-20

by

2016-07-20

While everyone was talking about Brexit last month, the Bank for International Settlements released its 86th annual report. Based in Basel, Switzerland, the BIS functions as a master hub for all the world’s central banks. It settles transactions among central banks and other international organizations. It doesn’t serve private individuals, businesses, or national governments.

Read More »

FX Weekly Preview: EMU Returns to Center Stage in the Week Ahead

2016-07-17

by

2016-07-17

Key event in Europe is not on many calendars--it is a ruling by the European Court of Justice. UK government and Tory Party stabilizing, leaving the Labour Party in disarray. US economy appears to have accelerated into the end of Q2. BOJ's meeting at the end of the month.

Read More »

“It’s Prohibited By Law” – A Problem Emerges For Japan’s “Helicopter Money” Plans

2016-07-14

by

2016-07-14

Over the past four days, risk assets have been on a tear, led by the collapsing Yen and soaring Nikkei, as the market has digested daily news that - as we predicted last week - Bernanke has been urging Japan to become the first developed country to unleash the monetary helicopter, in which the central banks directly funds government fiscal spending, most recently with an overnight report that Bernanke has pushed Abe and Kuroda to sell perpetual...

Read More »

Central Bank Wonderland is Complete and Now Open for Business — The Epocalypse Has Fully Begun

2016-07-14

by

2016-07-14

Summer vacation is here, and the whole global family has arrived at Central-Bank Wonderland, the upside-down, inside-out world that banksters and their puppet politicians call “recovery.” Everyone is talking about it as wizened traders puzzle over how stocks and bonds soared, hand-in-hand, in face of the following list of economic thrills:

Read More »

Germany Sells First Ever Negative-Yielding 10Y Treasury, Corporate Bonds

2016-07-14

by

2016-07-14

Overnight, we previewed what was about to be a historic for the eurozone bond auction, when this morning Germany sold its first ever 10Y bonds with a zero coupon.

Read More »

Going Dutch? Netherlands Joins The 10Y NIRP Club

2016-07-08

by

2016-07-08

For the first time in Dutch history, 10Y government bond yields have turned negative (-0.001% intraday) closing at 0.00%... Joining Switzerland, Japan, Germany, and Denmark... Pushing Global NIRP bonds over the $13 trillion!

Read More »

Fearing Confiscation, Japanese Savers Rush To Buy Gold And Store It In Switzerland

2016-07-08

by

2016-07-08

Japan has pushed further away from being the nation that embraces "Krugman Era" economics and deeper into the new "Bernanke Era" economics of helicopter money. As a result Japan's citizens have been on a blitz to save what little purchasing power they still possess, before hyperinflation finally arrives.

Read More »

ETF Securities Reports Biggest One-Day Gold Inflow Since Financial Crisis

2016-07-04

by

2016-07-04

It never ceases to amaze how vastly different the investment styles of gold paper vs physical traders are: while we have documented previously how the latter tend to buy progressively more the lower the price (as traditional "buy low, buy more lower" investing would suggest), "investors" in gold paper-derivatives such as ETFs and ETPs are quite the opposite: in fact, they rarely buy until someone else is buying and generating momentum.

Read More »

FX Daily, July 04: Four Things that Happened on the Anniversary of the Original Brexit

2016-07-04

by

2016-07-04

Inflation expectations fall in Japan. UK construction PMI fell sharply before Brexit. The Australian dollar recovers from the dip as investors await more results. It is not clear that Brexit has sparked a wave of nationalism or anti-EU sentiment.

Read More »

BofA: To Save Markets Central Banks Just Made Inequality And Populism Even Worse

2016-06-29

by

2016-06-29

There is a large dose of irony to the post-Brexit market response: while on one hand stocks have soared and as of today the S&P500 has already recouped more than half its post-Brexit losses (the SPX sank 5.7% peak-to-trough since the referendum and has since bounced 3.5%) an even sharper reaction has been observed in bonds.

Read More »

There Is Now A Staggering $11.7 Trillion In Negative Yielding Debt

2016-06-29

by

2016-06-29

It was not even a month ago when we last looked at the total amount of negative yielding debt around the globe, and were shocked to find that according to Fitch, for the first time in history (obviously), there was over $10 trillion in negative yielding debt. Fast forward 4 weeks later, and the grand total is now $1.3 trillion higher, or $11.7 trillion.

Read More »

Who Is The “European Movement” And Why The Answer May Change How You Vote On “Brexit”

2016-06-23

by

2016-06-23

The UK has to choice: Remain as sovereign state or merge it into the undemocratic United States of Europe. Big business, banks, central banks and the IMF want to excercise their power through unelected officials. And wonder who is responsible for the "European Movement."

Read More »

The British Referendum And The Long Arm Of The Lawless

2016-06-23

by

2016-06-23

Kings have long arms, many ears, and many eyes.” So read an English proverb dated back to the year of our Lord 1539. And thus was born an idiom that today translates to the very familiar Long Arm of the Law. It stands to reason that such a warning was born of feudal times when omnipotent and seemingly omnipresent monarchs personified the law.

Read More »

World’s Central Bankers Gathering At BIS’ Basel Tower Ahead Of Brexit Results

2016-06-22

by

2016-06-22

What happens on the 18th floor of the main tower at Centralbahnplatz 2 in Basel, stays on the 18th floor of the main tower at Centralbahnplatz 2.

Read More »

US Negative Interest Rate Bets Surge To Record Highs

2016-06-17

by

2016-06-17

As the "deflationary supernova" sweeps across the world, dragging bond yields to zero-and-beyond, even the almighty omniscent Federal Reserve has been forced to capitulate as the 'cheapness' of Treasury bonds lures the world's yield-hunters dragging ...

Read More »

JPMorgan CIO Crushes Cameron’s Scaremongery: Brexit “Hardly The Stuff Of Economic Calamity”

2016-06-16

by

2016-06-16

First The Telegraph, then The Sun, and today The Spectator all came out on the "Leave" side of the Brexit debate. However, perhaps even more shocking to the establishment is the CIO of a major bank's asset management arm dismissing the apparent carna...

Read More »

China and Japan Chart Update

A chart-up from China and Japan. Growth of Chinese industrial production, retail sales, fixed asset investment is at lows not seen since the Asian financial crisis. The Yuan is falling. Economic data from Japan is not a lot better.

Read More »

Chart up-date: Stocks, Bonds, Copper, Gold

2016-06-10

by

2016-06-10

Well that escalated quickly...All-time highs within reach... everything is awesome...wait what... Quite a week: Gold +5.25% in last 2 weeks - best run in 4 months Silver +5.65% this week - best week since May 2015 Copper -4% this week to lowest week...

Read More »