I am considering that it might be too sweet.
Chairman Powell stated in yesterday's press conference that he intends to tighten monetary policy at a more deliberate pace and with stronger force. This is quite reliable and trustworthy, unlike the insincere response from Bank of Japan's governor.
Looking back at the past, countries around the world were hit by severe inflation around 40 years ago in the early 1980s. At that time, Chairman Volcker of the Federal Reserve demonstrated strong leadership as an inflation fighter and successfully controlled skyrocketing prices in the Western world economy. Surprisingly, the effective federal funds rate in January 1981 reached 19.1%.
It is appropriate to recognize that the global economy is at a turning point in a wave cycle that lasts for decades. Although it is truly inappropriate, the Japanese government is likely planning to allocate fiscal resources needed for inflation response as "debt of future Japanese people," hidden from the public eye. This would require a fiscal budget of several tens of trillions of yen, which is certainly not enough.
Since the yen is becoming junk, it would be better to consider using other dollar-denominated assets for immediate needs, such as stocks, corporate bonds, government bonds, money market ETFs, etc.
Looking back at the past, countries around the world were hit by severe inflation around 40 years ago in the early 1980s. At that time, Chairman Volcker of the Federal Reserve demonstrated strong leadership as an inflation fighter and successfully controlled skyrocketing prices in the Western world economy. Surprisingly, the effective federal funds rate in January 1981 reached 19.1%.
It is appropriate to recognize that the global economy is at a turning point in a wave cycle that lasts for decades. Although it is truly inappropriate, the Japanese government is likely planning to allocate fiscal resources needed for inflation response as "debt of future Japanese people," hidden from the public eye. This would require a fiscal budget of several tens of trillions of yen, which is certainly not enough.
Since the yen is becoming junk, it would be better to consider using other dollar-denominated assets for immediate needs, such as stocks, corporate bonds, government bonds, money market ETFs, etc.
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