That the Japanese yen crossed most investors and the BOJ officials up by rallying strongly against the dollar after bank officials decided to sit tight was a warning sign. The news is out. Not only is the dollar falling, so is central bank credibility. But that just goes to show the real surprise here is that they ever had any credibility if it weren't falsely hawked by the Street and their lackeys in MSM.
As we noted before central bankers are caught in their own binary quandary, especially the Fed. Most of them are quivering in their frayed dot-plot suits, afraid at this point to do anything. In their idiotic, senseless chase for the illusive fantasy number, 2% inflation, these economic lemmings have done what central bankers with their data-driven madness do best--create messes.
A weaker dollar, artificially held down interest rates and higher gold prices equate with future inflation, otherwise known as further loss of buying power. They're the standard three legs of buy-on-the-rumor-not-the-fact stools. While the Fed dithers with data to be sure the jobs numbers confirm a demand for higher wages, higher wages won't wait.
The mood of the electorate in the upcoming election has been telling anyone who bothers to listen that for months. It ain't about Bernie or Hilary or Trump. They're just media created symbols for what's rumbling beneath the surface. Forcing down interest rates and holding them down is a form of global rent control. They'll be hell to pay when those controls get lifted. And that spells the fear investors globally are starting to smell emanating from the economic cellars of global bank bureaucrats and their comrades at the World Bank and the IMF.
Fear is to volatility as bureaucrats are to incompetence. Things now are such that just about anything these geniuses do can end up only one way--wrong.
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