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.