Valuable Insights from Around the Web – Wed 4 Jan, 2017

BOJ projected to own 75% of all outstanding Japanese debt in 5Y

Below are some very interesting facts about the BOJ’s QE program. It is staggering to see the data of how much money the BOJ has injected into the system. I still believe that if the Fed continues to raise rates especially if they are just trying to keep up with growing inflation then the other central banks around the world will be forced to follow. This will not bode well for these markets…

This will be a developing story throughout this year. Of course the Fed could also not raise rates this year and all the optimism will fade and we will be back to central banks continuing to print and keep rates low…



Look at the amount of money pumped into ETFs by the BOJ! This is why I say the major fundamental driver of markets these days is what the central banks do with all their easy money.

This chart shows how the BOJ is the main support system of its stock market… If the BOJ starts to reverse course then watch out below.

So much for any natural business cycle… Corrections are healthy for markets and as long as central banks prevent corrections the inevitable crash will be larger and much more painful.

Sorry for the gloom and doom 🙁

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  1. On January 4, 2017 at 11:47 am,
    CFS says:
    • On January 4, 2017 at 12:48 pm,
      OOTB Jerry says:

      abolish rather than audit would be in order…………jmho

  2. On January 4, 2017 at 11:51 am,
    CFS says:

    The danger, of course, in auditing the Fed, is that we will prove to the world that the country is bankrupt. Bye, bye dollar, hello hyperinflation.

  3. On January 4, 2017 at 11:59 am,
    CFS says:

    Fed Minutes: If Economy Heats Up, Rate Hikes May Accelerate
    By MARTIN CRUTSINGER – Associated Press – 9 minutes ago
    WASHINGTON (AP) — Federal Reserve officials, who boosted a key interest rate last month, said they might need to accelerate future rate hikes if a faster-growing economy pushes down the unemployment rate farther than currently expected.

    Minutes of the Fed’s December meeting released Wednesday showed that Fed officials discussed the impact of Donald Trump’s proposed economic program of tax cuts, deregulation and increased infrastructure spending. The Fed officials attributed the surge in stock prices, the increase in bond rates and the stronger dollar following the election to enthusiasm among investors about Trump’s plans to bolster economic growth.

    The minutes said that Fed officials believed they could maintain plans for gradual rate hikes but would need to be ready to hasten those increases if necessary to fight inflation.

  4. On January 4, 2017 at 12:02 pm,
    CFS says:

    WASHINGTON (AP) — The Latest on President-elect Donald Trump (all times EST):

    2:30 p.m.

    It’s a big hiring day for the incoming Trump White House.

    President-elect Donald Trump has picked Katie Walsh as deputy to chief of staff Reince Priebus (ryns PREE’-bus). Walsh worked for Priebus at the Republican National Committee and helped with party fundraising.

    Rick Dearborn, who used to work on Capitol Hill, is taking over a top job dealing with Congress.

    Joe Hagin — who’s worked in three GOP White Houses — is coming on board as deputy chief of staff for operations.

    The White House political director is Bill Stepien, a former political adviser to New Jersey Gov. Chris Christie. Stepien was fired by Christie in the wake of the Bridgegate scandal.

    Omarosa Manigault, a former contestant on “The Apprentice,” will focus on public engagement in the White House.

    And Keith Schiller, Trump’s longtime personal security guard, will be director of Oval Office operations.

  5. On January 4, 2017 at 12:09 pm,
    CFS says:
  6. On January 4, 2017 at 12:43 pm,
    CFS says: