Thread by @nap_trader

#Economics, what do we have going on? History lessons.
#Market #Analysis 9/25
A colleague of mine sent this today:
mishtalk.com/economics/stro… .

It even cites what I planned to cite below (Soros vs UK 1992), that's how hilarious this is. Clearly we're all on the same page. It was hot on my mind, as JPY said they were going to sell $USD to buy $JPY.

For a million reasons I intuitively knew this was silly. For one, why not print JPY? For two, why make an openly hostile action towards USD? Stupid. For #3, why not arbitrage your own currency? It's not like any country doesn't do that or hasn't.

Here's looking at you, GBP 1992. investopedia.com/ask/answers/08… (note: people like to quote Buffet, but in reality you should look to Soros). This was referenced in the original.

Why is Japan wrong? Because it's *BAD ECONOMICS*. MMT would like a word, to remind you that BOJ can print fn money. So...........print some goddamned money! It's that simple! Why so? Well, look at Japan's inflation: tradingeconomics.com/japan/inflatio…

Do you see something *very* different than the US here? Yes, you do. 5% inflation. Now, nobody wants inflation to be so bad that you set your money afire, but if somehow JPY being weak is a problem, printing some more to sell for USD...

would be the opposite of "Selling USD to buy JPY". I get what it's supposed to do, but it's also the wrong way to go. I mean Japan: tradingeconomics.com/japan/inflatio… "near 8 year high" or the US:

the US being forecast to continue to inflate through year end. usinflationcalculator.com/inflation/curr…

Meanwhile, macro recession continues as the $GBP craters. tradingview.com/x/JZpVyzbr/ . I don't know all of the issue, but seems like Liz Truss is going to be in some considerable heat.

So the simple words here are : *macro recession*. Things like this will happen.

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