The BLS random number generator printed big numbers for employment and wages this morning. Without commenting on the usefulness or veracity of this number, given the recessionary bent of most indicators, the result has been a surge in the dollar as the December rate hike is now seen to be certain. Bonds and commodities have been sold, while stock futures are unchanged for all practical purposes.

The surge in the dollar against essentially all currencies is intensely deflationary. When Japan raised rates under similar circumstances a few years ago, bond yields collapsed.

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