FED has to lower Rates or face Emergency QE.(Not a game)
Jerome Powell lied to say he raised rates due to "Inflation", this was a great cover however he clearly saw the USDJPY crisis coming like I saw from last year.
(Inverted Charts)
The DXY Rising + the USDJPY rising will unwind the carry trade that will sell off the majority of people holding US bonds via Japan. This will force the FED to initiate YCC locally.
Japan CANNOT keep rates low at this point or they will enter the no way out hyperinflation by 2025.
America CANNOT rise rates increasing the USDJPY past the point of no return (currently at 160) Yes we are at 151 and the complete fail point is 160.
Everyone has been expecting a recession, where is it?
Everyone is expecting a rate hike, will the FED do it?
Path 1 -- FED Hike or Hold, USDJPY falls below the point of no return, Japan is now forced to try raise rates while restarting YCC + Stimulus (at this point the Yen is now a failed currency and it could lead to mass political instability that causes a carry trade sell off)
Path 2 -- FED lowers rate's, USDJPY starts to revert pressure on the Japanese currency (at this point the FED is now taking the hit of debasement to try stabilize Japan).
Our financial system has been sick since the gold depeg, it has gotten sicker after 2009, 2020 has put us into critical times. I wish this was real but we are at the end of the MMT cycle. The US is forced into a corner to not raise rates to deal with risk markets rising while DEBT interest + US Gov to DEBT ratio make's raising rates unaffordable.
Japan after WW2 has become the YCC hub for America and rightfully so it worked due to the innovation that came out of Japan that brought them enough wealth to forget this policy.
This is the part where if Jerome Powell say's the wrong thing today, it could be time to exit majority of capital from the legacy system for future protection.
Capital Controls? Communism? Banking Limits? Spot Bitcoin ETF limitations? Executive Order 6102? I'm genuinely concerned that majority of people want rate hikes that will destabilize the entire world due to debt and cause a communist style global financial shutdown to contain the disaster.
What a failed monetary policy era we live in.