Friday, October 31, 2014

Japan Goes Full Metal Retard

Update EOD 31/10/14: The Nikkei has blown up from 15671.4 to 16962.1 in 24 hours (my time is different from most people) representing a ridiculous 8.2% move. Whut. The. Fukushima.

The news is crazy. The world is crazy. Good is bad. Up is down. Nothing makes sense anymore.

Markets Explodes As Bank Of Japan Goes All-In-er; Increases QQE To JPY 80 Trillion

As you know, who cares if the market blacked out last night and no one could trade the SPY, DOW or IWM for over an hour? There's always the Nikkei&USDJPY500 which has a correlation of 10 with all the US indices that will help you express all your leveraged long trading needs. 

Japan knows it cannot afford deflation with all its debt. Deflation is good for lenders, bad for borrowers. Inflation is good for borrowers, and they are huge ones, so they are going all out to force out inflation.

The BOJ is outright buying anything that can be bought, JGBs, ETFs and even J-REITs. I wish MAS would look at my portfolio and engage in a monetary policy to buy and push up the value of the assets I own. Shit, I should've been born in Japan.

They are crazy, driving their currency and economy straight into the ground. More currency doesn't make people actually richer (delusions and feelings though, that's another issue), only an increase to the actual goods and services that can be consumed will. Shit, what kind of dumbshit economics are they teaching in Japan? Unless policy makers know that all they are doing is forcibly stroking people to think they are richer (which people aren't buying it because they are not), they are digging themselves deeper down their already very deep hole.

I am hoping for a summer visit to Japan next year, maybe the Yen can reach more stupid levels like SGDJPY 100. We were at 6X from 2009-2012, and now we are at 86. A nice cheap Japanese summer holiday and good food for me soon, I suppose!

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