Deflationary Signals Flash as CPI/PPI Decline, Equities Slide, and Metals Hit a Possible Low
Retail spending weakens and CPI/PPI turn negative while bank credit growth slows. Equities retreat and metals sell off, yet early technical signals hint at a potential bottom.
Source: Peak Prosperity
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DW NOTE
The BOJ bought ¥6.2 trillion in bonds last quarter to hold the 1% cap. That's not monetary policy, that's price-fixing with other people's savings. Meanwhile, Americans are cutting groceries, clothing, and health care — recessionary behaviour — while CPI fell 0.42% month-on-month and PPI dropped 1.26%. Yet Treasury yields rose across the curve in the past month, and markets now price a 60% chance of a September rate hike. The Fed is tightening into deflation while consumers retrench.