Hartnett: "Fed Needs To Cut, And Bitcoin Will Be First To Sniff Out Coming Fed Capitulation"

Last week, in our post describing how "All Hell Breaks Loose In Japan As Yen, Bonds Crash Ahead Of Gigantic, Debt-Busting Stimulus", we quoted Deutsche Bank's chief FX strategist George Saravelos who said that "while most commentators have been focused on the recent bout of volatility in US equity markets something far more worrying is happening elsewhere in our view: the Japanese yen and bond market are collapsing together, with the dynamic sharply accelerating in recent days. The yen and 30-yr government bond have dropped by more than 5% in recent weeks, all the more remarkable given that global fixed income markets have been rallying elsewhere."

There is, of course, much more (read the whole thing here) but it largely boils down to this: a potentially catastrophic synchrony between the price of Japanese bonds and the yen, i.e., a hyperinflationary endgame, and now that another massive stimulus was just thrown in the game, Japan's ability to keep all the plates spinning is almost at an end.