Even A Paranoid Pig Finds An Acorn Of Doom Now And Again

Darker than dark blogger Tyler Durden over at Zero Hedge recently posted about central bankers losing control of the situation.

Quick recap: To pay for Sandra Fluke's contraceptives and otherwise prop up our pink police states, central banks all over the world are printing money like mad. The stock markets have shot up, fueled by this funny money*.

Here's a notable tidbit from Durden's Cassandraizing.

(T)he largest sell-offs occurred in Japan, and in Japan there is not only no risk of policy tightening, there policy-makers are just at the beginning of the largest, most loudly advertised money-printing operation in history. Japanese government bonds and Japanese stocks are hardly nose-diving because they fear an end to QE. Have those who deal in these assets finally realized that they are sitting on gigantic bubbles and are they trying to exit before everybody else does? Have central bankers there lost control over markets?

That's a great point. The markets are expected to swoon when the money printing stops or even at the hint of it. Japan has no such plans. Not now, not ever. The fundamental mechanism at play is

print money -> stock markets go up

When that no longer holds, we will experience ... money printing without benefit? Money printing itself has all kinds of perilous side effects. Without the stock market getting goosed, you'll have some very unpleasant times. Whatever the end state might be for all of us, Japan will probably lead the way.

It's not been a good month for the Nikkei stock index.

* - It's actually not that funny.