Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Stealth QE4 - Operation Tokyo Twist as Japan Sacrifices Pensions Funds

Interest-Rates / Quantitative Easing Nov 14, 2014 - 08:55 PM GMT

By: Jim_Willie_CB

Interest-Rates

Simply put, QE can never be halted or even slowed. The USFed is in a corner, with no policy options, facing collapse, with no ability whatsoever to halt the systemic failure in progress. It can only rely on hidden machinery and profound lies, against a background of constant economic propaganda. The central bank franchise system wrapped around the fiat paper currency regime has failed. They cannot stop it, not even with endless bond fraud and endless war, the new twin towers of the fascist state legacy. The entire financial structures have become fully dependent on easy money and debt financed by a printing press, buttressed by derivative machinery. The Uncle Sam bearing the USDollar emblem is like a pathetic heroin addict brandishing a modern howitzer. The USDollar is fast losing its integrity, during a dangerous global rejection episode. Therefore, QE must be exported, the easy candidate Japan. Call it Operation Tokyo Twist.


Heavy pressure, threats, and subterfuge are the American way. It is yet another sordid chapter in the Weimar Amerika story. QE to Infinity is the marquee billboard message, which will be perpetuated until the USGovt debt default and US financial collapse, forcing replacement of the USDollar. A Japanese syringe does not prevent the USD death, only delay it while deeper cancer spreads to the Japanese Economy and its financial structure. The United States is fast running out of nations to plunder. See Libya, Cyprus, Syria, Ukraine, the Philippines. Now Japan. Witness death of the US nation. The national carving ceremony will be very interesting to observe in future years, after the commercial colonization.

SYSTEMIC FAILURE GUARANTEE

The USEconomy will gradually move toward systemic failure for 10 main reasons. The isolation of the United States was foretold two years here. The US has become a pariah nation, ignored at all formal multi-national summit meetings. Obama is ignored on stage, placed with the wives. The US is not part of any new global platform implementation.

  1. QE is killing capital from rising costs as banker welfare remains in place
  2. USGovt has unmanageable debt as the great bloated welfare state remains in place
  3. USMilitary is a cancer as the great predator war machine remains in place
  4. Insolvent banks are grand casinos, no longer credit engines for capital formation
  5. Rigged higher USDollar value will make exports to foreign nations difficult
  6. Rejection of USTBond in trade will lead to amplified USGovt bond dumping
  7. QE volume will rise significantly to soak the discarded bonds, in hidden rooms
  8. Interest rate derivative reliance out of control, Failures to Deliver the smoking gun
  9. All sanctions have backfired, the Russian sanctions being the final event
  10.  USDollar regime does not participate in trade settlement, on a growing basis.

OVERVIEW

The USFed has exported Quantitative Easing on a gigantic scale to Japan. The plausible deniability cover is that the US offers a higher bond yield, with a rising USDollar chaser. So the USFed announced with balllyhoo an end to QE and its unsterilized bond monetization, used for four years to cover the USGovt deficit and all the rolled over matured USTBills and USTBonds. Next just coincidentally, the Japanese announce unlimited QE in Tokyo. The Tokyo vassals will conduct highly corrosive unsterilized bond monetization, just like the Americans have done for four years. The untold part of the story is that the USGovt has demanded of its Asian vassals that they devote their $1.2 Japanese Govt pension fund to USTreasurys. The US covets the pot, which will buy another year of time. The Germans blocked QE in EuroCB under Prince Draghi's tutelage. The focus of attention went to Japan, which cannot say to their American Victor Lords. The Yakuza sword lies above their heads. Keep in mind there are no $billion coincidences.

JAPAN SACRIFICES PENSION FUND

The Japanese do not wish to see their bonds rise in yield, since it would cause a major problem with delivered pension payments. The lost income stream would be an obvious blight on their financial field. Confirmation is seen not with any great alteration in the JapGovtBond yields, but with the falling Japanese Yen currency. Therefore in summary, the US will commandeer the Japanese Govt pensions, which will purchase USTreasurys. The Bank of Japan will monetize their replacement so that the pension fund will look intact. The blood on the floor is a falling Japanese Yen, which will have deep ramifications. The Wall Street uber-lords probably tried to convince them a cheaper Yen currency would be great for the export industry, with its vast array of exported items large and small. Also, foreign subsidiary translations would be more favorable, another benefit. Without a decline in JYen, the interest rates in Japan would go above 2% to 3% quickly. The flip side is higher energy import costs, noting that Japan imports over 98% of its oil. Call it Operation Tokyo Twist. The USFed exported QE, thus putting QE4 on track in the latest hyper monetary inflation obscenity.

The USFed is again proved liars, as QE continues from a foreign outpost (outhouse). They lied by promising 0% (ZIRP) as lasting only six to nine months. They lied by promising QE bond monetization would be temporary, a one-time event. They lied as to what Operation Twist was, when China dumped all long-term USTreasurys in favor of quickly expiring short-term USTreasurys. They lied on Taper Talk last year, for reduced volume of bond purchases. They lied on usage of QE funds to purchase the major US Stocks using the S&P500 index. They lied on Interest Rate Swap dependence, the London Whale incident having exposed JPMorguen as losers. They lied in the nationalization of AIG, so as to rescue Goldman Sachs after killing rival Lehman Brothers. They have lied every single month on QE bond volumes, far more than double the officially stated volume. They have lied every single month on the black hole under the rug, since QE covers ruptured hidden derivative losses. They might be in the $trillions.

Proof of Operation Tokyo Twist is seen in the recent price action for the Japanese currency. The Japanese Yen went from 91 at end September, to 94.5 in mid-October, to 87.8 on November 3rd, to 86.35 on November 13th. A falling currency is the confirmation of the US bond grab, a smoking gun, since Tokyo replaces the seized pension funds in monetized manner. This is nothing but a huge shell game with Yellen the Liar in Chief at the Fed. They put a gun to Tokyo's head, and they engineered the twist. Vengeance will come from Germany and Japan, but also from the entire East. Both Russia & China will join in the vengeance against the Anglo-Americans and King Dollar Regime. It has months to live, not years. It no longer sits upright on its throne, its velvet eaten by heroin stains, at least two legs fractured. The upcoming G-20 Meeting in Brisbane Australia will see the writing on the executioner's wall. The US delegates will be listening, not dictating. A death blow might soon come from Shanghai, where in pursuit of an equilibrium based gold market, the Chinese are indicating a doubled Gold price and tripled Silver price. The West will not be able to stop it, to arbitrage it, or to ignore it. The reason is simple: the West has run out of Gold.

The King Dollar is in the final death throes, and the entire world knows it. Well, except for sleepy Americans, who do not comprehend its role as global reserve currency. When the new Scheiss Dollar arrives, the wake up call comes. Its painful devaluations will bring price inflation, supply shortage, social disorder, and shock to the gutted nation. A preview is given. The fast cratering retail sector is another symptom, led by Wal-Mart, Sears, Amazon, and Target. Until then, the Tokyo Twist will be the song on the FOREX dance floor where all the gals (fiat currencies) are ugly, in a desperate contest to be the least ugly. The new BRICS gold & silver backed currency is at an advance stage in the design rooms, soon to see actual implementation. The Gold Standard is to be re-installed, euphemistically called the Currency Reset. History is on the verge of being made.

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

"For over five years I have been eagerly assimilating any and all free information (articles, interviews, etc) that Jim Willie puts out there. Just recently I finally took the plunge and became a paid subscriber. I regret not doing this much sooner, as my expectations were blown away with the vast amount of sourced information, analysis tied together, and logical forecasts contained in each report."   (JosephM in South Carolina)

"Not only have I seen many of the things you talk about in the public arena come to pass, but I have seen many of the things you say repeated three months later by the other analysts. Congratulations!"   (MannyM in England)

"Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do."   (Charles in New Mexico)

"A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one's head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out."   (The Voice, a European gold trader source)

by Jim Willie CB
Editor of the “HAT TRICK LETTER”
Home: Golden Jackass website
Subscribe: Hat Trick Letter

Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com, which includes a Squirrel Mail public email facility.

Jim Willie CB Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules