"Stock, Bond, and Currency Markets Collapse"
- 2024-07-31
- News
- 58
- 37
Following China for a day means three meals, following the United States for three days means nine meals of hunger. And this is not the worst part; the worst part is the financial war between China and the United States, and the most injured is Japan. It was thought that Kishida, bringing his own provisions, could gain the United States' understanding by following the United States to encircle China.
However, what was unexpected was that China's economy was stable and exceeded expectations in the first quarter by reaching 5.3%, while Japan faced a triple whammy in stocks, bonds, and foreign exchange, with the yen falling to a 34-year low. Even the stock market, which returned to its peak, encountered a counterattack. Is Japan going to be the United States' sacrificial lamb in the Sino-American financial war? Will Japan be the first country to fall in the Sino-American financial war? At this critical moment, the Japanese Finance Minister urgently visited the United States to gain understanding.
Japan's "Stock, Bond, and Foreign Exchange" Triple Whammy
It can be said that it's like going back to the eve of liberation overnight. The yen collapsed, once falling to a 34-year low, and this is not the most terrifying part; the most terrifying part is that the stock market is falling, the foreign exchange market is setting new lows, and even the bond market is being abandoned. Is Japan really going to become the United States' blood bag in the Sino-American financial war?
Recently, the Japanese exchange rate has been quite unceremonious, not only breaking through the high position of around 151 but also falling continuously to the position of 154, setting a new 34-year low since June 1990, and this is not the end.
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Japanese media even said that the depreciation of the yen is unstoppable.
In addition to the significant devaluation of the exchange rate, the Japanese bond market, known as one of the world's three major bubbles, is finally about to collapse. Recently, the yield on Japanese 10-year government bonds has risen sharply, reaching around 0.86. This is even more unacceptable for Japan.
Because we know that Japan's debt scale accounts for about 260% of GDP. Now that the bond market yield is rising, it means that the Bank of Japan has to pay higher interest when borrowing money. Moreover, this also means that Japan's bond market is not only deserted but also experiencing capital sales.Moreover, even the Japanese stock market, which was once hot last year, has recently been falling continuously, from a high of around 41,000 points to around 38,000 points recently, a drop of nearly 10% compared to its peak. It can be said that Japan is now in a precarious situation.
In fact, all of this was already predetermined. In Japan's eyes, the United States is its ally, but in the eyes of the United States, it is just a hunting dog brought along during hunting. When the United States is rich, Japan eats what the United States eats. However, when the hunter in the United States cannot catch prey, Japan becomes the dish that the United States wants to serve on the dining table.
Moreover, last year, in order to make Japan raise interest rates, the United States once used Japan's Special Investigation Department to carry out a bloodbath among the high-level officials in Japan, and almost all the cabinet ministers who supported monetary easing were taken down. Before that, as the "God of Stocks," Buffett even increased his holdings in Japan's five major trading companies to nearly 5%, and finally reached nearly 7%.
And this money is not taken out by Buffett himself, but raised by issuing bonds in the Japanese bond market, which means that Buffett borrows money in Japan to speculate in the Japanese stock market.
And earlier this year, Goldman Sachs, a global investment giant, announced its withdrawal from Japan's banking business. Less than a month later, Japan ushered in a situation where stocks, bonds, and foreign exchange were all killed.
If you say all of this is a coincidence, who would believe it?
While Japan's stocks, bonds, and foreign exchange were all killed, the Bank of Japan chose to remain silent. Last year, when the Japanese exchange rate depreciated, the Bank of Japan intervened in the foreign exchange three times to confront the short sellers, ultimately pinning the Japanese exchange rate to around 151. However, there was no action this time, all of which makes people suspect that Japan is going to serve itself on the dining table?
China and the United States fight, Japan gets hurt.
Watching him build a high-rise building, watching him entertain guests, watching his building about to collapse. The great trend of a hundred years is vast, and Japan, which has left Asia and entered Europe, will eventually return to its original position.Everything in Japan today is a result of Japan's departure from Asia and entry into Europe. In the current context of the East's rise and the West's decline, Japan naturally needs to return to its rightful historical position. In fact, what difference is there between today's Japan and present-day Israel?
We all know that the consistent stance of Europe and America has been to maintain a balance of power from the sidelines, and in the Asia-Pacific region, that balance is against China. In the current context of the US-China rivalry, it is no longer realistic for the US to confront China with its own strength alone. Moreover, the wealth that Japan possesses today is seen by the US as a gift bestowed by them.
In the midst of the US-China rivalry, Japan naturally needs to contribute its strength, even everything it has, to the US. This is why we see the US continuously taking action against China, while enduring not to lower interest rates, maintaining high interest rates to compete with China in terms of endurance. Behind this, Japan needs to continuously provide financial support to ensure that the US economy does not collapse.
As a result, we see the Japanese yen depreciating further, and the stock and bond markets facing crises, yet Japan dares not act rashly. This is because, although Japan has foreign exchange reserves of around $1.2 trillion, $1.1 trillion of it is invested in US debt. The foreign exchange it can actually use is relatively limited.
If Japan wants to save itself, it has to cut into the US's flesh, but would the US agree to that? Moreover, in the US's plan, either to raise the Japanese stock market and set up a trap in the Japanese financial market to harvest capital from the Asia-Pacific region, or to harvest Japan itself, creating a crisis in the Asia-Pacific region through Japan, thereby dragging the entire Asia-Pacific region into a crisis, and finally the US comes in to reap the benefits.
This is why we see Japan hesitating to raise interest rates, and this time, with the triple kill of stocks, bonds, and currency, Japan dares not move at all. In order to save itself, the Japanese Finance Minister can only fly to the US personally to seek help from the US.
That is to say, Japan wants to spend its own money to save itself, but it still needs the US's approval.
For the US, is its victory more important than Japan's life? I think the US would definitely choose the former. Therefore, the more intense the financial rivalry between China and the US today, the more severe Japan's injuries will be.
It is also not ruled out that at the last moment, the US would destroy Japan itself. After all, in the US's view, what it cannot get, how could it be left to China? And using Japan as the spark for the Asia-Pacific financial crisis is not unacceptable. After all, Japan's overseas presence is essentially laid out in the Asia-Pacific region.So this is also one of the intentions of the United States to make Japan raise interest rates. Either to harvest Japan, or to harvest Japan while harvesting the Asia-Pacific region to make up for its own huge financial deficit, after all, the threat of the Japanese whale is enough to cause huge fluctuations in the surrounding economy.
Therefore, this financial game has reached a time when the situation is clear. For us, it is necessary to do a good job in fire protection, to prevent the black hand of the United States, but also to prevent the aftershocks of Japan's fall, after all, the United States has gone crazy, and no one can underestimate the bottom line of the United States.
Moreover, it should be known that the rise of the United States is plundering, and the United States has no psychological obstacles in doing all this. Therefore, we need to be prepared for any eventuality.
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