Behind the Curve

In Japan real interest rates are now clearly in negative territory. Real interest rates are overnight call rates minus core cpi. The Bank of Japan Governor Toshihiko Fukui warned about the ongoing negative real interest rate environment and expressed concerns for the first time the BOJ may be badly behind the curve.


As this relates to the USA...we are way ahead of the curve....this situation in Japan will result in the unwinding of the famous carry trade and help soak up the worlds excess capital...and take pressure off our Fed!