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IPFS News Link • Corbett Report

The Financial Press Just Admitted the Markets are a Sham

• James Corbett - The Corbett Report on Steemit

Take a recent story that bubbled up amid all the hype about the all-time record highs in the "What Could Possibly Go Wrong?" manipulated stock markets. You might have seen it. It was reported all over the usual MSM dinosaur fake news financial press outlets.

Here's the headline that the mother ship of the banksters' fake news press, the Financial Times, ran with:

And here's the NY Times formulation:

And, perhaps most telling of all, this hot take from perennial market pimp CNBC:

The global market "punch bowls?" That sounds like a Corbett Report headline, not something from CNBC. So what's going on here?

Well, the story is about the Bank of Japan's (BOJ) recent decision to scale back its purchases of Japanese government bonds (JGBs). You may or may not know that the BOJ has been single-handedly propping up the Japanese bond market for the last five years by engaging in (in the characteristically blunt words of the banksters themselves) "Outright Purchases of Japanese Government Bonds." These purchases have amounted to several trillion yen (i.e. several billion dollars) worth of bonds per month every month since 2013, a buying spree that has seen the BOJ become the largest holder of JGBs in the market. Then, as if that wasn't enough, the BOJ actually promised unlimited bond purchases (literally whatever it takes to "calm markets") last summer when word came that other central banks were starting to tighten their own monetary spigots.

Not the subject of these particular headlines, but very relevant to the larger story, is the fact that the BOJ's purchase of Exchange Traded Funds (ETFs) made it into a top 10 shareholder of 90% of the companies in the Nikkei 225 in 2016 and the largest single shareholder of 55 different companies in "Japan Inc."

What these latest headlines speak to is the fact that investors who have been riding the waves of BOJ-fueled euphoria in the rising Japanese stock market are now freaking out that the central banksters are getting ready to take away (as even CNBC calls it) the "punch bowl" of central bank funny money. The key words there are "getting ready." As even (Rothschild) Reuters notes, "When Japan's central bank made a small cut to its regular bond purchases this week, what should have been an unremarkable market operation to manage monetary policy shot the yen and bond yields higher as investors began to price in a rapid exit from crisis-era stimulus."

To be clear: This is not a change in policy. This is not an end of the BOJ's JGB buying spree. This is just easing the foot off the gas pedal ever so slightly. And people are freaking out. So, in other words, the heroin might be in danger of running out sometime in the foreseeable future and the junkie is having pre-withdrawals.

AzureStandard