Expecing USD/JPY to go < 100.00, and continuing lower over the next couple of weeks. Japan will then surprise with helicopter money sometime middle of next month when USD/JPY < 96.
The deal is sealed imo. Yellen effectively told the market there is a December rate hike coming, or possibly November. It was not asking permission. It is a statement.
Yellen gets spanked in front of 85M people: Trump Slams Yellen’s Fed Again, This Time on a Much Bigger Stage http://www.bloomberg.com/news/artic...-s-fed-again-this-time-on-a-much-bigger-stage
I am beginning to agree with Schiff, but in a round-about way. I think we get a December rate hike, and I think we get QE4 too! But QE4 looks really strange: The FED buys equities and goes negative IRs European banks go under and US banks fair little better in that environment, leading to one massive catastrophic event on the Dollar __and__ the Euro. JPY? Seriously? I am short the dollar to negative infinity from here, even in the wake of belief of a December hike!!!!!!! Where does money hide? Gold is going to $700 or even lower, even in this dollar environment because deflation is going to murder everything. Oil may fair a little better, but not much. What's left? Real Estate is another bubble in many areas. Bonds, pffft, well, zero is better than negative. Deflation is what the world is going to fight, not inflation. And some say, stagflation.
What's the Endgame? I know what the disease is. But the world has to learn the hard way. I just hope it doesn't end in WWIII. May we all vaya con Dios.
This is news only to Lacker since everyone with even the slightest feel for the obvious knew it already: Lacker Warns Fed Governors Can Be Subject to Political Influence Steve Matthews SteveMatthews12 October 5, 2016 — 4:06 PM CDT Share on FacebookShare on Twitter Facebook Twitter Instagram YouTube Richmond Fed chief sees regional Feds as an important balance Fed presidents dissent, while governors rarely do, he says Federal Reserve Bank of Richmond President Jeffrey Lacker defended the U.S. central bank’s structure as important for preserving monetary policy independence from politics, warning that the Fed Board of Governors in Washington has become less insulated from partisan influence. “The apolitical aspects of Reserve Bank governance seem especially useful given the potential for political influence on the publicly appointed parts of the Fed,” Lacker said Wednesday in the text of a speech in Huntington, West Virginia. Because governors now leave after a few years, “the composition of the Board of Governors is less insulated from the political process than was originally envisioned.” He did not comment on monetary policy or the outlook for the U.S. economy in the text of his remarks. Democratic presidential contenders Hillary Clinton and Bernie Sanders have both said that private bankers should be excluded from sitting on regional Fed boards, and a Republican U.S. lawmaker is pushing a bill to cut back the capital that they pay into the system. Lacker argued the central bank’s unusual structure, which includes 12 regional Fed banks that have commercial banks as shareholders, works to generate more independent decision making and avoids group-think that could yield to short-term political influence. Voting on policy is shared among rotating Fed bank presidents and governors appointed by the president. Governors are appointed to staggered 14-year terms, a length intended to make them independent from the political election cycle, but in practice their tenure is typically less than half that, Lacker said. “So in practice the view of governors may not be as diverse as intended,” he said. “By the end of a president’s term in the White House, it has typically been the case that the majority or every member of the Board of Governors was appointed by a president of the same party.”... http://www.bloomberg.com/news/artic...vernors-can-be-subject-to-political-influence
Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed http://www.bloomberg.com/news/artic...1-percent-in-biggest-drop-since-brexit-result