"Paper money eventually returns to its intrinsic value — zero.” - Voltaire
They did it again! This is complete and total madness. I rarely am speechless, but this news just dumbfounds me. I really don't know what to say or, even if I want to say anything. This kind of news just makes me want to shrug my shoulders and throw my hands in the air in complete disgust...
Damn! I need a stiff drink!
At least last weeks F-up, when the idiot prime minister just up and gave away $57 billion dollars of money that Japan doesn't have, that made me mad enough to write commentary. You see, probably because that doesn't happen too often... (once is one time too often as it is).... But the Bank of Japan debasing the currency - repeatedly - in a hope to stop deflation and arrest the yen's rise, seems to happen every six months...
The Bank of Japan has made another effort to buy assets and debase the currency of this country. That's four times in the last 18 months or so... The last three didn't work, so why not throw away another few hundred billion dollars?
How many times do they have to do this, and have the failure repeated, before they ever figure out that this doesn't work? Zerohedge reports in BOJ Eases. Einstein Rolls Over in His Grave:
"...the BoJ defends its decision to follow Einstein's definition of insanity by doing the same thing over and over again expecting a different outcome (Nov 2008 was the last time CPI was above 1% YoY). Admittedly, at some point the ever-increasing BoJ balance-sheet-to-GDP will become too much even for a nation hell-bent on printing its way out of chronic deflation only to be punched-and-kicked by a balance-sheet-recession so deep and full of deleveragers. The facts are that the BoJ will expand its LSAP-equivalent program by JPY10tn (USD123bn) - raising the 'stock' - but maintaining the same pace of JGB-buying at JPY1.8tn per month - leaving the 'flow' stable - hence extending the program by around six months." (read the rest at Zerohedge)
Simply put, LSAP is another word for “money printing”... They keep doing this over and over (for the last 20+ years) and the results are the same. Yet they keep doing it.
I no longer get mad at this, folks. Why should I? It's like a dumb puppy you bought. At 8 weeks old, the dog keeps sh*tting on the living room rug. You keep getting mad and yelling and screaming about it over and over. But the dog keeps doing it over and over everyday.
Day after day, over and over; the dog sh*ts on the rug. One day, you realize that the dog is too old now to be trained and is just plain stupid and is going to keep sh*tting on the living room rug no matter how much you piss and moan about it. What you going to do about it then?
Are you going to keep getting mad and screaming about it? Will you get all riled up and let it destroy your health and give you high blood pressure and a heart attack? Or will you accept that it is what it is?
I'd get mad, I suppose, but since I am not Japanese, I cannot become a politician in this country and I cannot vote... So I can scream and scream... Nothing changes... I try to get the people of this country mad about it, but not enough people seem to care...
I guess I'm either tired now or I've given up on these people in government and the Japanese people who are going to pay the price for this when the party ends.
When the sh*t hits the fan, don't say that I didn't try to warn you.
You'd better accumulate all the gold and silver you can while you can because this ain't going to be pretty.
Read about how we're heading for a cliff in "Japan's Economic Collapse Will be Absolute and it Cannot be Stopped"