Thursday, February 6, 2014

Here's Why Stocks Are Exploding Higher Today

It's called a "carry trade".

The Japanese government this morning has doubled down on it's own QE. It has announced that it will monetize even MORE debt.

Investors worldwide are borrowing cheap Japanese Yen at suppressed interest rates, exchanging those rapidly-devaluing yen into dollars, and dumping them into the US stock market! The USDJPY (Dollar/Yen) currency cross is exploding higher, with much of that money being funneled into US stocks. This is the result:

Central bankers are desperate to keep the bubble blowing, and they are willing to do whatever it takes, even though it will eventually cause ruination. This is not happening because stocks are a good value. It is happening solely based on complicity by central bankers to keep the illusion going!