Japanese Yen & USD Death Spiral In Action - YCC Yin Yang
Things are getting interesting in bond land, Japanese central bank balance sheet increasing after 09 to keep US bond yields down is finally starting to show signs of fail.
This system is starting to break due to investors losing faith in the system.
As faith is lost US bonds are sold, as US bonds are sold Yields go parabolic, Japan has been a US proxy since 09 to keep US yields in place
Stage 1
This works very well from Japan points of view due to how bad 1989 was and how the mentality of debt, leverage got destroyed essentially making the speculation market dead.
It allows the Central Bank Of Japan to create money and allow cheap credit near 0% interest rates without the problem of inflation. Now since 2020 this model has broken and Japan is getting inflation this is almost red alert due to the leverage of money supply in bonds.
Stage 2
US M2 / JP M2 debasement work together making the illusion the DXY is strong when in reality the US is forcing the EU / JP to debase pushing up the DXY.
Japanese Bond Yields have started to break causing actual investors to dump Japan bonds and US Bonds forcing the Japan Central Bank to do hard YCC on both JP and US Bonds.
BUT the increase in us interest rates has sparked even more selling of US Bonds and even more Japan YCC, the treasury debt interest is also almost at 1 Trillion.
Conclusion
Japanese Bonds & The US Bonds are finally in a Yin Yang death spiral feeding off each other and its starting to get out of control, Bank of Japan are even starting to panic.
Japan literally cannot raise interest rates as they would blow up the entire system due to debt interest being the largest holder of US debt.
The FRED will be forced to implement some type of Yield Curve Control on Japanese Debt while giving Japan time to Yield Curve Control the US Debt, meanwhile? Bitcoin is actually moving in correlation with the Japanese Central Bank Balance sheet.
QE To Infinity is closer than people think for those who don't know the US bond market is valued at 51tn.
Japan valued at 12.3tn
This market will have to be forced into QE / YCC as the bonds are the collateral for the world banks if they fail the world fails.
הערה
BANK OF JAPAN ANNOUNCES UNSCHEDULED BOND BUYING OPERATIONHa.Ha
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כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.