As we are currently seeing in the US markets where price discovery barely exists as volatility is another instrument the Fed has for the most part complete control of now with its unlimited printing power.

The Fed is using Blackrock to backstop the US Government Pension Plan is similar in that the Bank of Japan (BOJ) is effectively backstoping the country’s retirement system which would be insolvent had the BOJ not propped up the country’s equities which is where a substantial portion of retirement “wealth” is parked since JGBs yield next to nothing.

The massive presence of the BOJ in public “capital markets” (where independent price discovery no longer exists)