In a time of deflation, the money in your wallet will be worth more tomorrow than today

  • Pinch yourself as reminder that the U.S. is in uniquely good shape in a world of trouble elsewhere.
  • The greatest risk to the U.S. now is the Fed’s loss of face, and failure of Fed Chair Janet Yellen’s term.

The story lead for once is not China — not directly. Overnight action by the Bank of Japan has pushed long-term U.S. interest rates down to the lowest levels since last April, the 10-year T-note to 1.92 percent, and mortgages 3.75 percent.