The News From Planet Ruby—Friday, August 25, 2023
The Earth is literally and figuratively on fire. Aside from the actual burning fires, things are heating up in the markets as the apes digest the unexpected implication that "higher for longer" might mean "higher for longer". We suspect a psyop by the Black Rock they venerate as a conduit to their principle deity, the Dollar: A brilliant double-bluff by this cabal at the heart of their priesthood.
Markets Swiftly Rethink
"Higher for longer" has been the mantra from the Fed for months now, but the markets didn't believe them. And why should they, when the Fed has such a poor track record?
This week, though, the message finally filtered through. Perhaps they really mean it. Perhaps the data backs it up.
USD strength has driven stonks and bonds down, causing 10-year US Treasury yields to soar to a 16-year high. Some analysts have expressed concern that China will deliberately weaken its currency further to boost exports (à la 2015), de facto strengthening the dollar and putting downward pressure on risk assets. All of this will, no doubt, be discussed in detail at Jackson Hole over the weekend.
Not wanting to miss out on all the crashing, Russia's Luna-25—the first moon mission for the country in nearly 50 years—"moved into an unpredictable orbit and ceased to exist." India's Chandrayaan-3 spacecraft made the same attempt on Wednesday, successfully achieving the soft landing that will make both the Kremlin and the Federal Reserve jealous.