$BTC
đ„ăBombshellăJapanese Government Bond Default, Global Financial Markets About to Experience a Tsunami! đ„
đ„đ„The yield on 30-year Japanese government bonds rose to 3.41% today, the highest level since 1999!
Japan in trouble â Global financial markets will be affected
1. Japan has too much debt.
Japan's debt is 2.3 times its GDP, the highest in the world.
Previously, they could hold on because interest rates were almost zero, borrowing was costless.
Now, with higher interest rates â Japan is starting to falter.
2. The Bank of Japan is stuck.
It now only has two paths:
Raising interest rates đ Leads to the government being unable to repay its debts â Debt crisis erupts
Not raising interest rates đ Inflation keeps rising â The yen continues to depreciate, and the people become poorer.
Neither path is easy!
3. For over 30 years, the world has profited from Japan's "cheap money."
Banks and funds worldwide borrowed yen at low cost â invested it in other countries â profited from the exchange rate difference.
This is called yen carry trade, and it's enormous in scale.
If the yen suddenly strengthens, this trade will go bankrupt â everyone will frantically liquidate their positions â global assets will be sold off â markets will crash.
4. Changes in Japanese interest rates will trigger a global chain reaction.
If Japanese interest rates rise again:
Emerging market currencies will fall by 10-15%
US stocks, especially tech stocks, may fall by 12-20%
Global interest rates will rise by 0.5-1%
Mortgages, car loans, and credit cards â will all become more expensive
Because the era of cheap money is over.
5. This isn't an "economic recession," it's a change of era.
For the past 30 years, the world has relied on Japan's low interest rates for "blood transfusions."
Now Japan can't sustain it anymore; the blood transfusion machine has broken down.
Asset bubbles (stock market, real estate, tech valuations) will be "squeezed out."
đĄWhy is this crucial for everyone in the crypto world?
1ïžâŁ The era of chea