The Bank of Japan is once again pushing deflation into the financial system by aggressively devaluing the Yen against the $USD. This is the famed Yen carry trade and it is being done to rig stocks.
The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article written by Graham Summers (GainsPainsCapital.com)
You can see the CLEAR inverse relationship between the two in the chart below, with virtually every down-tick in the Yen/$USD pair matching an UP-tick in the S&P 500.
The problem with this is that when the Yen drops hard against the $USD, it exports deflation in the financial system.
There’s only so much the system can take until “something” breaks and, last month, that “something” was Oil. The commodity has dropped an incredible 15% in roughly three weeks thanks to the Bank of Japan’s meddling.
This is a preview of what’s coming to stocks.
Stocks LOVE market rigs in the short-term but those same rigs always end HORRIBLY down the road…Given how overbought stocks are, the potential for a sharp 15% drop similar to that which Oil just staged could very well hit stocks soon.
A crash is coming – it’s going to horrific – and smart investors will use it to make literal fortunes from it.