Again, last night came yet another sign that Deflation, not inflation, is still lurking in the Japanese financial markets.

Like an old character actor, who sits in the wings, Deflation lingers in the background, but never quite leaves.

Waiting, I suppose, for that day, when he will step to center stage, and into the spotlight.

This year marks the 59th anniversary of a strange and mysterious disease called Polio. Although a majority of American's carried the Polio Virus, only a few were afflicted by the most virulent strain, one that caused paralysis.

This year marks the 59th anniversary of a strange and mysterious disease called Polio. Although a majority of American's carried the Polio Virus, only a few were afflicted by the most virulent strain, one that caused paralysis.

It was the most devastating Economic Quarter in nearly a century.

It all began innocently enough. Suggested social distancing, advised wearing of masks, recommended self quarantine.

It will only last a couple of weeks we were told, just long enough to “flatten the curve”, which meant slow the rate of infection...

It was a week when Chinese Economic Growth suddenly took a big drop. US Inflation rocketed above 5% for the first time in years.

But there seems to be nothing that will change Jerome Powell and the Fed's Basic Strategy of Loose Money and Easy Interest.

Let's face it most of us are News Junkies. We have to be. As investors news from around the world can affect just how the financial markets here at home perform.

And anyone who has watched the news this week has to be stunned with some of the profound events that are happening on a worldwide scale. From the renewed Covid Lock Down in Australia, to the riots in South Africa, to the demonstrations in France and England.

In the novel, Moby Dick, Captain Ahab is the megalomaniacal commander of a whaling ship. With just one thing in mind: to capture the great white whale, Moby Dick.

It has been much the same for the current Chairman of the Federal Reserve, Jerome Powell. Since he assumed a position on the Board, back in 2012, and certainly in the 3 ½ years since he has been Chairman, Powell, like the Fed in general, has had really one Monetary Mission. To stimulate inflation.

Yesterday we saw something that we haven't seen in nearly a half century. It was the profound change in Consumer Attitude toward inflation.

The 350 million American consumers when surveyed, declared that they think that prices will do up at nearly 5% for the foreseeable future.

Tomorrow JP Morgan Chase will begin this quarter's earnings season as they always do. The nation's largest bank is given this honor, kind of like the first person to tee off in a Golf Tournament.

And why not, Morgan after all is the nation's largest bank, by a pretty good sized margin. And they are, by any measure the heart and soul of our financial system.

This coming week will be dominated by our look back at the Second Quarter of the Year. Which, by almost all estimates may be the best quarter of this year.