Category: Money Printing Pump
Stubborn
Weakening
Money Printing – Made in Japan
The Japanese are turning the pumps on once again! I'm trying to get a handle on total money printing. I've built charts showing combined FED, ECB and BoJ assets in dollar terrms. The thing is, with the yen collapsing on the announcement of more Japanese printing that hasn't occurred yet, this pump measure is falling sharply. This new pump measure seems very effective as a 10-day leading indicator for the S&P 500 in recent months.
click chart to enlarge
Stocks Aloft
Same Old
Central Banks Still at the Wheel
Weclome to the Chartateria
Some interesting charts this evening showing relationships between central bank balance sheets, foreign exchange rates, and the S&P 500.
click chart to enlarge
The Money Printing Pump chart I show frequently does not factor in the Japanese printing. This chart of the ratio of Japanese central bank assets to European central bank assests shows how the S&P pullbacks align with pauses in Japanese printing.
click chart to enlarge
The long-term relationship between dollar yen and relative Japanese and US money printing remains intact. The Japanese are printing faster than the US, hence their currency is falling. A light pause in that ratio recently has seen a pullback in dollar yen.