Can the world’s central-planners arrest the #deflation? Or are they now perpetuating it?
To review slide 8 of our current macro deck:
- Burning Euros are not going to magically create inflation
- Burning Yens are not going to produce inflation “targets” either
Instead, $1.07 Euro (-11% YTD vs. USD) and $121.67 Yen (-1.5% YTD vs. USD) are creating the mother of all ramps in the US Dollar. Picking up right where it spiked to last week, the US Dollar Index is already +0.7% this week to +9.1% YTD.