Yen Goes Wild, Bank Deposits Collapse Second Biggest Weekly Drop Ever

Bank deposits haven't fallen this hard in a week since September 11, 2001. It's not just Tax Day. It's something else.

• Bank of Japan buys yen, causing a 3.5% rise in value in just 4 hours.

• Second largest weekly contraction in bank deposits ever, signaling huge deflationary forces are piling on.

• Small business rent delinquency rate at its highest since March 2021, indicating increasing costs and declining revenues.

• The only thing that can save the yen is the Fed cutting to zero, which they will eventually do, just not until they are forced to.

• Stay out of the Yen.

Bank of Japan Buys Yen

The Bank of Japan woke up yesterday, allegedly, and fired three large shots at the forex market, but they're being coy about it, because they're probably really embarrassed and scared. After hitting a low of 160.21 yen per dollar, the BoJ came in guns blazing, but with silencers, and fired three rounds of dollars with one of those airguns they use to shoot T-shirts at screaming crowds at baseball games. This is usually done by the team mascot. I remember it being Billy the Marlin when I was a kid.

The BoJ managed to get the Yen as high as 154.487, a 3.5% rise in the space of 4 hours. The new line in the sand appears to be 157, which we are crawling at now, black line below.

It won't hold for long.

Second Biggest Drawdown in Bank Deposits Ever Last Week

This is interesting. The money supply is about to seriously contract.