Inflation Data This Week -Yen Bottom?

This week is full of inflation data and we continue to see many main streeters looking for a resurgence. The reference point is the 1970s which we have covered many times and which we will continue to debunk as the 70s inflation is not today’s inflation. There is nothing that the FRB is doing today, would compare with what or how things transpired back then. The biggest factor is today, the United States and global economies are funded by massive QE programs from all global central banks. Another factor is all the global central banks work in coordination with one another to one degree or another. The reason for the dislocations we are seeing now, the reason for the increased inflation is because they can no longer mask it. They have tried for decades to tell us low rates, ZIRP and QE were necessary, now they are telling us the opposing spectrum that higher for longer rates are necessary…Do you see how during both circumstances, they always tell the investing public these policies are “necessary.”

The reality is, all the policies, ZIRP, High Rates, QE, QT (never really QT) are all “necessary” the reality is they are all manipulated processes by which global central banks control monetary flows and concentrate wealth to only a select few. This is their real intent, their real design, to function as an extension of behind the scenes controlling and ruling parties. While governments may be at odds or even promote certain sides, MONEY never picks a side, it funds both and that that is why it is very difficult to navigate the reality of such large numbers like we have today.

The US government is paying $1T a year in interest. Many believe this doesn’t matter its an accounting thing, well if you realize that $1T in interest has to be paid from funds already in play, then that money is diverted from let’s say improving our standard of living, from improving productivity, from improving infrastructure. Even worse if this interest isn’t paid from existing funds, then “NEW MONEY” or Inflation needs to take place, and inflation’s flipside, devaluation is a better way to look at it. So don’t kid yourself, the precipice has been passed, these numbers are truly defining a new society, one by which we believe is at the heart of removing individual rights and ownership. Have you noticed how hard it is lately, how expensive everything is? This should be very, very troubling.

Alright enough of the rant, as the title suggests we have a lot of inflation data this week:

We know the global central banks love to force their issues and thus this week should provide us with insight as to whether or not the FRB can pause, skip or whatever they call it or if they have to play the game of fighting inflation further.

We know Japan and the Yen are starting to realize that the NIRP will have to come to an end and we believe this is a good thing, but is it a good thing for the carry traders out there or risk assets in general. When we look at the Yen vs the Nasdaq for instance, it seems as if the Nasdaq may see some selling pressure if the Yen does indeed bounce from here:

Source: CQG, Magnelibra