BOJ went NIRP

[Spectrism]

http://www.zerohedge.com/news/2016-01-30/japan-just-lit-fuse-9-trillion-debt-bomb

Japan Just Lit the Fuse on a $9 Trillion Debt Bomb http://www.zerohedge.com/sites/default/files/pictures/picture-20289.jpg (http://www.zerohedge.com/users/phoenix-capital-research)

Submitted by Phoenix Capital Research (http://www.zerohedge.com/users/phoenix-capital-research) on 01/30/2016

On Friday the Bank of Japan implemented Negative Interest Rate Policy, or NIRP.

It is the second Central Bank to do so. The European Central Bank or ECB first went to NIRP in June 2014.

Thus, between Japan and Europe, over 20% of the world’s GDP is being managed by a Central Bank with NIRP.

More importantly, TWO major currencies in the world are now at NIRP while the US Dollar is at 0.5%.

Why does this matter?

Because hundreds of billions of Dollars in capital will be fleeing Japan to come to the US.
The US Dollar has been in a bull market since mid-2014. It is not coincidence that it started when the Euro first went to NIRP: the minute the EBC implemented NIRP money began fleeing the Euro and moving into the US Dollar.


To put this into perspective, this move was larger in scope than the “flight to safety” that occurred in 2008 when everyone thought the world was ending.

The reason this is problematic?

There are over $9 trillion in BORROWED US Dollars sloshing around the financial system.
And much of it is parked in assets that are denominated in emerging market currencies (the very currencies that have imploded as the US Dollar rallied).

This is the US Dollar carry trade… and it is larger in scope that the economies of Germany and Japan… combined.
ALL of this DEBT is at risk of blowing up when the US Dollar began to rally. And now that both Europe AND Japan are implementing NIRP, the US Dollar bull market is only going to get worse.
How bad?
The US Dollar has broken out of the single BIGGEST falling wedge pattern in history. You are looking at a 40 year chart pattern that has been broken.


This tells us that something absolutely MASSIVE is happening in the financial system right now. That "something" is the beginning of a $9 trillion debt implosion.
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my take.... commodities will drop further in US$ price. Gold and silver and oil will be heading down to lower prices. It is questionable what will happen with stocks, besides the normal PPT tampering. It is possible that they will go up as money seeks to own things in US dollar ties. China already put severe clamps on the escape of money from China. Watch for similar controls in Japan and Europe.

[Neuro]

Central Banks in Sweden, Denmark and Switzerland is practicing negative interest rates too...

http://www.bloombergview.com/quicktake/negative-interest-rates

[gunDriller]

There is a HUGE difference between zero and NIRP.

It's as if they're BEGGING people to buy Gold.


Pressuring people to invest in the stock market ? Only when the herd believes in the stock market - which is sort of like a religion in the US and apparently around the world.

[Spectrism]

There is a HUGE difference between zero and NIRP.

It's as if they're BEGGING people to buy Gold.


Pressuring people to invest in the stock market ? Only when the herd believes in the stock market - which is sort of like a religion in the US and apparently around the world.

These things are all in fulfillment of this prophecy:

Rev 13:9 If anyone has an ear, let him hear.
Rev 13:10 If anyone gathers captivity, into captivity he goes. If anyone will kill by a sword, by a sword he must be killed. Here is the patience and the faith of the saints.
Rev 13:11 And I saw another beast coming up out of the earth. And it had two horns like a lamb, but spoke like a dragon.
Rev 13:12 And it executes all the authority of the first beast before it. And it causes that the earth and those dwelling in it should worship the first beast, of which was healed its deadly wound.
Rev 13:13 And it does great signs, that it even causes fire to come down out of the heaven onto the earth before men.
Rev 13:14 And it deceives those dwelling on the earth, because of the signs which were given to it to do before the beast, saying to those dwelling on the earth to make an image to the beast who has the wound of the sword, and lived.
Rev 13:15 And was given to it to give a spirit to the image of the beast, so that the image of the beast might even speak, and might cause as many as would not worship the image of the beast to be killed.
Rev 13:16 And the small and the great, and the rich and the poor, and the freemen and the slaves, it causes that they give to them all a mark on their right hand, or on their foreheads,
Rev 13:17 even that not any could buy or sell, except the one having the mark, or the name of the beast, or the number of its name.
Rev 13:18 Here is wisdom: Let the one having reason count the number of the beast, for it is the number of a man and its number is six hundred and sixty six.


What will happen is that the controllers will slam the doors shut. It will be illegal to make any transaction outside a digital system. All money transfers will be subject to government oversight. Physical assets held by people- no longer called possessions or private property, will be state property and subject to siezure at any time. Real estate will be taken by government agencies as they see fit. Martial law will be deemed necessary to combat internal terrorism. Terrorists will include all those who believe in the old ways, personal liberty, private property, due process of the law, equal justice for all under the law, and most of all: christians.

[Joshua01]

These things are all in fulfillment of this prophecy:

Rev 13:9 If anyone has an ear, let him hear.
Rev 13:10 If anyone gathers captivity, into captivity he goes. If anyone will kill by a sword, by a sword he must be killed. Here is the patience and the faith of the saints.
Rev 13:11 And I saw another beast coming up out of the earth. And it had two horns like a lamb, but spoke like a dragon.
Rev 13:12 And it executes all the authority of the first beast before it. And it causes that the earth and those dwelling in it should worship the first beast, of which was healed its deadly wound.
Rev 13:13 And it does great signs, that it even causes fire to come down out of the heaven onto the earth before men.
Rev 13:14 And it deceives those dwelling on the earth, because of the signs which were given to it to do before the beast, saying to those dwelling on the earth to make an image to the beast who has the wound of the sword, and lived.
Rev 13:15 And was given to it to give a spirit to the image of the beast, so that the image of the beast might even speak, and might cause as many as would not worship the image of the beast to be killed.
Rev 13:16 And the small and the great, and the rich and the poor, and the freemen and the slaves, it causes that they give to them all a mark on their right hand, or on their foreheads,
Rev 13:17 even that not any could buy or sell, except the one having the mark, or the name of the beast, or the number of its name.
Rev 13:18 Here is wisdom: Let the one having reason count the number of the beast, for it is the number of a man and its number is six hundred and sixty six.


What will happen is that the controllers will slam the doors shut. It will be illegal to make any transaction outside a digital system. All money transfers will be subject to government oversight. Physical assets held by people- no longer called possessions or private property, will be state property and subject to siezure at any time. Real estate will be taken by government agencies as they see fit. Martial law will be deemed necessary to combat internal terrorism. Terrorists will include all those who believe in the old ways, personal liberty, private property, due process of the law, equal justice for all under the law, and most of all: christians.

Luckily for me I've only got 10-20 years left on the planet. The black market will survive at least that long after government control have been put in place.

[Spectrism]

Central Banks in Sweden, Denmark and Switzerland is practicing negative interest rates too...

http://www.bloombergview.com/quicktake/negative-interest-rates


Imagine a bank that pays negative interest. Depositors are actually charged to keep their money in an account. Crazy as it sounds, several of Europe’s central banks have cut key interest rates below zero and kept them there for more than a year. Now Japan is trying it, too. For some, it’s a bid to reinvigorate an economy with other options exhausted. Others want to push foreigners to move their money somewhere else. Either way, it’s an unorthodox (http://www.businessweek.com/articles/2013-11-18/larry-summers-has-a-wintry-outlook-on-the-economy) choice that has distorted (https://medium.com/bull-market/apple-just-proved-that-the-zero-lower-bound-still-exists-4f5402b97e43) financial markets and triggered warnings that the strategy could backfire. If negative interest rates work, however, they may mark the start of a new era (http://www.bloomberg.com/news/articles/2015-11-11/negative-interest-rates-the-new-normal-next-time-economies-slump) for the world’s central banks.


The Situation The Bank of Japan surprised (http://www.bloomberg.com/news/articles/2016-01-29/yen-tumbles-more-than-2-as-boj-adopts-negative-interest-rates)markets Jan. 29 (http://www.bloomberg.com/news/articles/2016-01-29/bank-of-japan-adopts-negative-interest-rates-by-vote-of-5-4)by adopting a negative interest-rate strategy. The move came 1 1/2 years after the European Central Bank became the first major central bank to venture below zero. With the fallout limited so far, policy makers are more willing to accept sub-zero rates. The ECB cut a key rate (http://www.bloomberg.com/news/articles/2015-12-03/ecb-cuts-its-deposit-rate-to-minus-0-3-as-boost-to-qe-awaited) further into negative territory Dec. 3, even though President Mario Draghi earlier said it had hit the “lower bound (http://www.bloomberg.com/news/2014-05-27/krugman-warns-ecb-panel-world-s-central-bankers-have-it-wrong.html).” It now charges banks 0.3 percent to hold their cash overnight. Sweden also has negative rates, Denmark (http://www.bloomberg.com/news/articles/2015-02-11/fx-speculators-seen-driving-denmark-to-test-world-s-lowest-rate) used them to protect its currency’s peg to the euro and Switzerland (http://www.bloomberg.com/news/articles/2014-12-18/snb-starts-negative-interest-rate-of-0-25-to-stave-off-inflows) moved its deposit rate below zero for the first time since the 1970s. Since central banks provide a benchmark (http://www.bloombergview.com/articles/2015-02-24/metal-manipulation-and-negative-rates) for all borrowing costs, negative rates spread to a range of fixed-income securities (http://www.bloombergview.com/articles/2015-02-13/money-for-nothing-and-company-cash-for-free). By the end of 2015, about a third (http://www.bloomberg.com/news/articles/2015-10-23/draghi-s-signal-adds-190-billion-to-negative-yield-universe) of the debt issued by euro zone governments had negative yields. That means investors holding to maturity won’t get all their money back. Banks have been reluctant (http://www.bloomberg.com/news/articles/2015-01-28/nordea-bank-may-charge-clients-for-deposits-amid-negative-rates) to pass on negative rates for fear of losing customers, though Julius Baer (http://www.bloomberg.com/news/articles/2015-02-26/julius-baer-charges-institutional-clients-for-snb-negative-rate) began to charge large depositors.



Banks won't want to lose money. They won't want to hold cash. When all else fails, they will either minimize cash holdings- leveraged out to stock or bond holdings, or they will pass on the negative interest rates. At first, people will seek to pull cash- causing a run on banks. This will force a cash-less society. Eventually, all will be forced into a bond or stock program. While it will sound like an attempt to keep markets flowing and money velocity above zero, its real intent is control of everything you do.

[Spectrism]

Luckily for me I've only got 10-20 years left on the planet. The black market will survive at least that long after government control have been put in place.


Not sure how you figure that... 10-20 years left on the planet, because the planet does not have that many years left in the current ecosystem. The shitstorm about to break loose this year will tell you whether I am right. I really think all is done by the Fall of 2018 (if not 2017).

I have long held that we have no more expectancies past 1948 + 70 = 2018.

[mick silver]

something coming just don't know yet ....
Not sure how you figure that... 10-20 years left on the planet, because the planet does not have that many years left in the current ecosystem. The shitstorm about to break loose this year will tell you whether I am right. I really think all is done by the Fall of 2018 (if not 2017).

I have long held that we have no more expectancies past 1948 + 70 = 2018.

[Twisted Titan]

One of the finer points that everybody is missing is this.

The BOJ lied about NIRP for years....years.

And everybody believed them right up until the sledgehammer cracked them right across the side of their head.


Remember the axiom:

Things dont matter...until they do.

[Cebu_4_2]

One of the finer points that everybody is missing is this.

The BOJ lied about NIRP for years....years.

And everybody believed them right up until the sledgehammer cracked them right across the side of their head.


Remember the axiom:

Things dont matter...until they do.

The USi central bankers has kep this under wraps for a long time. Who knows if this propaganda is real or not. Might be Japan is trying to fix their shit and the central banks don't like it? Remember back in the '70s and early '80s everything was mad in Japan? Now it is China, that cut Japan down to single percentiles of export.

[madfranks]

If investors around the world start rushing to the USD for protection, watch for gold/silver to drop hard again.

[Cebu_4_2]

If investors around the world start rushing to the USD for protection, watch for gold/silver to drop hard again.


Funny thing is film for anything that uses silver is tripled in the past couple years even though silver took a dump and is stabilized. Users gonna be users nomatter what.

I also have suppliers adding fuel charge surcharges to deliverys from 4 years ago.

Don't order much but will call the owners on this in the next week. Complete bs.

[Twisted Titan]

I just rented a car for a week to see my mom...

Everything was cool with the price quoted.

Then come time to pay up..i see that the taxes is almost 50 dollars on a 300 buck rental

I askfor a break down and the taxes where actually 20 dollars and the extra 30 was a 5 dollar a day fuel surcharge...im like i brought it back full why am i being assed a fee?


No answer and i didnt want to break balls because i got a free upgrade, drove it with no insurance and did a round trip to florida when they have 3 state radius and put like almost 2600 miles in 5 days.

I got my 30 dollars and then some.

[Cebu_4_2]

I just rented a car for a week to see my mom...

Everything was cool with the price quoted.

Then come time to pay up..i see that the taxes is almost 50 dollars on a 300 buck rental

I askfor a break down and the taxes where actually 20 dollars and the extra 30 was a 5 dollar a day fuel surcharge...im like i brought it back full why am i being assed a fee?


No answer and i didnt want to break balls because i got a free upgrade, drove it with no insurance and did a round trip to florida when they have 3 state radius and put like almost 2600 miles in 5 days.

I got my 30 dollars and then some.


You don't have auto insurance or didn't buy theirs? Your own insurance will cover their car if it's full coverage.