{"id":20546,"date":"2016-05-14T07:55:33","date_gmt":"2016-05-14T12:55:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20546"},"modified":"2016-05-14T07:55:51","modified_gmt":"2016-05-14T12:55:51","slug":"kuroda-san-in-the-mouth-of-madness","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20546","title":{"rendered":"Kuroda-San in the Mouth of Madness"},"content":{"rendered":"
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Kuroda-San in the Mouth of Madness\u00a0<\/a><\/h3>\n<\/div>\n
Deluded Central Planners<\/strong><\/div>\n
\n

Zerohedge recently\u00a0reported on an interview given by Lithuanian ECB council member Vitas Vasiliauskas<\/a>, which demonstrates how utterly deluded the central planners in the so-called \u201ccapitalist\u201d economies of the West have become. His statements are nothing short of bizarre (\u201cwe are magic guys!\u201d) \u2013 although he is of course correct when he states that a central bank can never \u201crun out of ammunition\u201d.<\/p>\n

\"BankBoJ governor Haruhiko Kuroda \u00a0 \u00a0\u00a0Photo credit: Toru Hanai \/ Reuters<\/p>\n

The mental state of BoJ governor Haruhiko Kuroda may be even more precarious though. As\u00a0Marketwatch reports<\/a>, he recently gave an interview to German financial newspaper B\u00f6rsen-Zeitung, in which he\u00a0inter alia<\/em>\u00a0threatened even more BoJ intervention:<\/p>\n

Bank of Japan Gov. Haruhiko Kuroda said\u00a0the central bank \u201ccan still ease [its] monetary policy substantially\u201d if necessary<\/strong>, in an interview with German financial newspaper B\u00f6rsen-Zeitung published Wednesday.\u00a0<\/em><\/p><\/blockquote>\n

This is\u00a0per se<\/em>\u00a0not surprising, although one wonders what Kuroda thinks can possibly be achieved by upping the ante on\u00a0this<\/em>:<\/p>\n

\"1-BoJ<\/a>Assets held by the BoJ vs. the Nikkei index \u2013 April 1999 = 100 \u2013 click to enlarge.<\/p>\n

We have added the Nikkei Index to the chart of BoJ assets above because inflating stock prices is one of the central bank\u2019s declared goals \u2013 its stake in ETFs listed on the Tokyo Stock Exchange has in the meantime exploded to more than 50% (which we believe is eventually going to create a socialist calculation-type problem).<\/p>\n

The results of this mad-cap buying spree are decidedly underwhelming so far. Although the pockets of central banks are of unlimited depth, this is also no big surprise, as central bankers are probably\u00a0the worst traders in the world<\/a>.\u00a0 One also wonders how further monetary easing is supposed to \u201cimprove\u201d on\u00a0this<\/em>\u00a0situation:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Kuroda-San in the Mouth of Madness\u00a0 Deluded Central Planners Zerohedge recently\u00a0reported on an interview given by Lithuanian ECB council member Vitas Vasiliauskas, which demonstrates how utterly deluded the central planners in the so-called \u201ccapitalist\u201d economies of the West have become. His statements are nothing short of bizarre (\u201cwe are magic guys!\u201d) \u2013 although he is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6275,57,124,8473,5412,5413,2854,452,572,6170,13785],"class_list":["post-20546","post","type-post","status-publish","format-standard","hentry","category-economics","tag-actingman","tag-bank-of-japan","tag-central-banks","tag-central-planners","tag-etf","tag-exchange-traded-fund","tag-haruhiko-kuroda","tag-japan","tag-nikkei","tag-pater-tenebrarum","tag-tokyo-stock-exchange"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20546"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20546\/revisions"}],"predecessor-version":[{"id":20547,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20546\/revisions\/20547"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}