If you go to the local market the sparkly has a known value.
Say the local value is 100 schmeckels.
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But one day you decide to travel to country Zenoblob.
In Zenoblob that sparkly is HIGHLY desired.
You can break of just a tiny bit of the sparkly and with it you can exchange that tiny bit for the best restaurants, the best transportation, the best hotels and still have a lot of sparkly left over.
You go home thinking you are a genius so you start looking for more sparkly.
You find another chunk of sparkly and this year you try the same thing again.
This is gold.
It is inverted.
The lower the line goes the higher the price of gold in USD.
When it takes more USD to buy gold?
Thats a measure of inflation.
2nd chart zoomed out.
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Here is USDJPY (the jPanesa) and US long bond yields.
Notice the striking correlations
On this chart - when the blue line goes up, bond yields go down. When the blue line goes down, bond yields go up.
The higher the blue line goes on this chart? The lower the bond yield. Lower bond yield = new car loans go down, credit card interest rates go down, etc.
Blue line going up = FRENCH TICKER
Its *STIMULATIVE*
Stonk loves when blue line go up.
because jPanesa own so much US debt, they can move bonds with ease. ESP so because the jAnet isnt selling as much long bond - this makes jPans job easier.
They do all of this to control currency - in green.
When the green line goes up the USD gets weaker.
A weaker USD means US exports get cheaper.
Your groceries get more expensi.
Your overseas vacation gets more expensi.
Anything US imports gets more expensi.