Wednesday, January 27, 2016

OVERNIGHT RISK IS BACK: There's No Free Lunch

The fake dollar rally is over. Everyone to the other side of the boat...

"Never mind"
Monetary Policy by Police Squad continues as the Fed admits that the economy isn't improving...




A year and half bogus dollar rally is now reversing...commodities and Emerging Markets were monkey hammered, oh well...

Dollar/Yen:



We've seen this movie before:
The last time the Fed blinked was last September...



There's no free lunch, either the dollar is getting strong, or (now) the Yen is getting stronger...
Yen w/S&P:


The Fed doesn't really set interest rates, corporations importing deflation (aka. poverty) having been setting interest rates for 35 years:

Capacity utilization with Fed Funds:



What a tool believes: "Lowering rates is to help (un) employment"

Interest rates with employment ratio:




Core inflation (aka. wages) with Fed Funds:




The Fed are just corporate chimps. Along for the ride...