axel merk, president and chief investment officer of merk investments made the argument last august. earlier today he spoke to my colleague, brendan greeley. -- >> we have had years of central banks compressing complacency in the markets. they were not aware of it. now with what happened last year , the fed decided that they would pursue an exit in earnest. meaning that they took the lid off the pressure cooker with the risks rising. rather than buying them, people are going to sell them. it's a process, people will not realize immediately that the markets have changed. people realizing they have more interest in presuming -- assuming capital. we have janet yellen looking at somethingmarkets and like inflation expectations. labor markets are backward looking indicators. she will be slow to react to this. the market will cascade much, much lower. >> there is no sign anywhere in consumer or market indicators that there is inflation pressure , so why would she change her mind based on assumptions about inflation? let's just compare janet yellen and mario draghi. they are looking at rela

let's ask axel merk. in that chart, the result seems to be the weaker currency. call it a currency war? axel: of course, although i think the u.s. dollar is missing here. yes, this is a currency war, everyone would like to have a weaker currency and it feels good to have a week currency at first but then you are trading with a great deal of limits. alix: if you take a look at what happened to the yen after the boj an ounce negative rates at the end of january, you have the yen fall immediately but then if rallied. there you see the inversion. so as the dollar declines, the yen gets stronger. so does this work? course it doesn't. it doesn't fix structural issues. for so many years and last summer, the fed took the lid off the pressure cooker by saying they will pursue an exit. the fed is the biggest elephant in the room. they are all desperately trying to weaken the currency but keep in mind this is in the context of years when we were told that the fed would hike rates when everything was great in the u.s.. coming down ine the u.s. that we will not be hiking as ag