http://www.bloomberg.com...capacity-of-1-1-billion

Deutsche bank issuing a couple of rebuttals on its balance sheet position. Add the fact that they have openly decried negative rates by the ECB and BoJ...that lehmann scenario is playing out almost to perfection.

Credit Suisse is quickly following the same path. Turmoil.

Japan's economy shrank more than expected in the final quarter of last year as consumer spending and exports slumped, adding to headaches for policymakers already wary of damage the financial market rout could inflict on a fragile recovery.

Gross domestic product contracted by an annualized 1.4 percent in October-December, bigger than a market forecast for a 1.2 percent decline and matching a fall marked in the second quarter of last year, Cabinet Office data showed on Monday. It followed a revised 1.3 percent increase in the previous quarter..........
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With his stimulus policies that gave big manufacturers windfall profits, Abe had hoped to generate a positive cycle in which companies raise wages and help boost household spending.

Instead the data showed that private consumption, which makes up 60 percent of GDP, fell 0.8 percent, exceeding market forecasts of a 0.6 percent decline.

Economy Minister Nobuteru Ishihara told reporters after the data was issued that the economy would head for a moderate recovery as its fundamentals remained strong.

Its going to be another day in the red, with this kind of news coming from China

[quote=alutacontinua]Interesting take by Ray Dalio on what the future of Monetary Policy is likely to be by Central Banks

https://www.linkedin.com...eed-article-title-share[/quote]
CB's will go absolutely nuts when formulating policies to tame deflation. At this point, it's safe to say that QE4 will be an epic fail when it is launched.

What Will MP3 Look Like?

While negative interest rates will make cash a bit less attractive (but not much), it won’t drive investors/savers to buy the sort of assets that will finance spending. And while QE will push asset prices somewhat higher, investors/savers will still want to save, lenders will still be cautious lenders, and cautious borrowers will remain cautious, so we will still have “pushing on a string.” As a result, Monetary Policy 3 will have to be directed at spenders more than at investors/savers.

“China is the easy scapegoat, but seriously if anyone is surprised about China’s growth slow-down and its needs to buy time for changing its economic mix-up, they need their school money back.”

Deflation is a reality and monetary solutions will not aid to avert it. Direct cash transfers have been initiated in Sweden( if my memory serves me right) with dismal results...inflation is well below the "ideal" 2%. A recently deceptive strong euro is certainly not helping the reflation cause.

The sooner they abandon these monetary experiments the sooner the structural issues can be dealt with.

http://the-japan-news.com/news/article/0002774631

Japan's population nightmare. Policy makers should concentrate on reflating this rather than the CPI.