Monkey’s Market Minute w/c September 26th, 2022

These are just snapshots of the Monkey's Market Minute daily newsletter. Subscribe to TFM on GiveSendBro or Subscribestar to access the entire content.

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September 26th, 2022

So everything began on Thursday. Japan is in too much debt and on the road to hyperinflation. It can’t raise rates, and it’s buying its bonds with printed money. The Japan Yen is in trouble, and Japan decided to “intervene” which means to “buy” their currency using their US Dollar and US bond reserves, meaning Japan was dumping dollars and bonds to buy Yen. […]

September 27th, 2022

Point Number 1: There is no fundamental “link” between the exchange rate of the dollar and commodities except when the FED is actively causing inflation via QE, in which case the “link” is more of an ice-cream/shark attack link. Ice cream sales don’t CAUSE shark attacks, but Summer causes both ice cream sales and shark attacks to rise together. When the FED is stimulating asset prices, it causes the dollar to weaken and inflates asset prices, including commodities, but the weakening dollar doesn’t CAUSE the commodities to go up any more than the ice cream causes the shark attacks. […]

September 28th, 2022

US natural gas is another story, which is slumping due to Hurricane Ian, which is due to hit Florida this week. The reason a hurricane is bearish for natural gas is that hurricanes tend to knock out electricity, and natural gas is used to generate electricity. If the electricity is out, then demand goes down. However, due to evacuations, gasoline use may be up, so what’s bearish for one kind of energy may be bullish for another kind of energy. The hurricane may also be preventing LNG from being exported, which lowers the price since it increases supply domestically while causing prices to rise in Europe. […]

September 29th, 2022

 The Bank of England pivoting due to high bond prices has (rightfully) caused people to second guess the “peak inflation” narrative. The Bank of England’s bonds were heading up to 7% or 8% when the BOE threw in the towel and pivoted. […]

September 30th, 2022

The Bank of England will be the testing ground of a novel new approach to fight inflation while causing inflation at the same time from the same geniuses that created MMT and promised us that inflation was transitory. They’re going to  . . . wait for it . . . print money . . . AND raise rates at the time. Brilliant right? The markets are expecting this new “solution” to spread throughout the entire Western world (because what other choice do they have? Cut spending? Abandon Climate Change?) and everything sold off. […]

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