This chart is just for entertainment.
The US is not in a very nice situation now. Simply because of the yield. As we know, if it goes back above 5%, there would be BIG trouble.
From what I can see now, there is high probability of them trying to slow the $ going up. Looking at EURUSD, perhaps we are seeing signs of this now.
Which is why the Japs are also worried - in case the $ weakens considerably.
A high $ with a high yield in a 'weak' economy is surely a recipe for disaster. Add to that fiscal and trade deficit, plus high debt.
The playbook is actually quite simple. Next, we can expect some bubbles to burst (CRE + Stocks), to be followed by non other than a Banking Crisis. This would add to the Deflationary pressure (good to know inflation is busted) - economic downturn + unemployment + reduced spending. Finally comes the Policy response - we should know what this means.
They are at the cross road now. The Japs are emerging from 160.16 - perhaps free at last. Which means the US is taking over the place of the Japs. No wonder they responded. No not the Japs, as they are on holiday :-)
Good luck.
The US is not in a very nice situation now. Simply because of the yield. As we know, if it goes back above 5%, there would be BIG trouble.
From what I can see now, there is high probability of them trying to slow the $ going up. Looking at EURUSD, perhaps we are seeing signs of this now.
Which is why the Japs are also worried - in case the $ weakens considerably.
A high $ with a high yield in a 'weak' economy is surely a recipe for disaster. Add to that fiscal and trade deficit, plus high debt.
The playbook is actually quite simple. Next, we can expect some bubbles to burst (CRE + Stocks), to be followed by non other than a Banking Crisis. This would add to the Deflationary pressure (good to know inflation is busted) - economic downturn + unemployment + reduced spending. Finally comes the Policy response - we should know what this means.
They are at the cross road now. The Japs are emerging from 160.16 - perhaps free at last. Which means the US is taking over the place of the Japs. No wonder they responded. No not the Japs, as they are on holiday :-)
Good luck.
Kommentar:
Kommentar:
Gold is showing us what is coming VERY soon.
DJI/SPX/NDX be very careful - it will likely follow with a crash soon.
Just a note, there will be a very swift 'flight to safety' which we all know will mean a rise in $. Looks like now the market is getting ready for this. Attempts to weaken the $ does not seem to work. US10Y will rise!!!
Once the policy response comes, $ will likely fall.
Good luck.
DJI/SPX/NDX be very careful - it will likely follow with a crash soon.
Just a note, there will be a very swift 'flight to safety' which we all know will mean a rise in $. Looks like now the market is getting ready for this. Attempts to weaken the $ does not seem to work. US10Y will rise!!!
Once the policy response comes, $ will likely fall.
Good luck.
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