Global equities turned sour again overnight, as the war in the Ukraine rages on, along with UK inflation. The UK CPI number blew out all expectations, surging to 6.2%, a thirty year high! This is despite the Bank of England aggressively raising rates, in an attempt to combat inflation. The UK Chancellor also enacted an immediate cut to fuel taxes, in an attempt to alleviate cost-of-living pressures and fight surging prices. The Fed Chairman Powell is also starting to realise the inflationary crises, but refuses to end the damaging inflationary QE programs. Central Banks must end ‘modern monetary theory’, debt monitisation and QE.
The European Council meet today to discuss the growing crises, including food, energy and the war. Biden is flying in to meet with the European Council, G7 and NATO. Let’s hope the acute acumen and soaring intellect of the President of the USA, can address the current spiralling crises’, along with the combined genius of the European leaders who got us here?
US 10 Year bond yields surged to above 2.4%, reflecting the Fed and current inflation, which boosted the US Dollar. The EUR has dipped below 1.1000, once again, while the Yen crashed to 121.40. European nations are in he middle of an existential crises, that none have experienced before and look to be failing at ever post.
The surge in commodity prices continued , which supported the associated currencies, as the AUD tests 0.7500 and the NZD holds above 0.6950. A negotiated settlement must be agreed, in the Ukraine and escalations must be immediately dialled back.