How are Both the Yen and Yuan Falling

In my earlier post back in September, I reviewed the difficulty of the Federal Reserve's role in balancing the needs of both China and Japan's desire for a weaker currency.

Since the US election, both the Chinese yuan and Japanese yen have fallen against the US dollar.

 The stock market has reached new heights:

 But, 10 Year Treasury Yields have risen over 50 basis points.

The FED has indicated they will raise interest rates at their December meeting. If the goal of the FED is to strengthen the US dollar, prop up the stock market (like it really needs it) and to raise yields on treasuries, it is a foolish exercise. Eventually, the higher yields have a negative effect on equity markets.

How Far Can Bond Yields Rise Before Hurting Equities? Goldman Answers - Zerohedge, November 28, 2016


For a real doomsday scenario, watch the following video: David Morgan Analyzes a Dollar Collapse, ROLLOVER 1981