FederalXBT

USDJPY | FRED RATE CUT / BOJ / QE to Infinity Emergency Is here.

FX:USDJPY   U.S. Dollar / Japanese Yen

Japanese Yen running the risk of entering Hyperinflation like the Argentine Peso thanks to the USA.
  1. JPY Used to purchase US Debt while USA has Inflation problem has caused them to purchase more than expected including the FRED running (System Open Market Account (SOMA) (soft YCC)
  2. China cannot get growth due to US higher rates slowing business growth meaning > Bank Of China has to start rate cutting and essentially do extreme QE or China will collapse.
  3. Japan will be FORCED to not raise interest rates due to them owning the most US Debt (bonds) on low interest rates. Japan is experiencing spike in inflation and currency devaluation as people are figuring this out.
  4. China forced to QE to counter deflation Yuan will collapse.
  5. Japan forced to QE to counter inflation Yen will collapse.
  6. If Japan raises rates the BOJ & institutions have to offload US bonds collapsing the US Bond market as the interest rates will destroy the carry trade.
  7. FRED cannot pause they have no choice to start rate cuts within the next months.
  8. If the FRED does not do this Japan's demise will send the US bond market under forcing QE / YCC by the FRED sending the FRED balance sheet to all time highs.
  9. If the FRED does not do this China could experience a complete society breakdown.

  1. There's a log term H&S on the JPY/USD that was going to eventually be tested leading to a -47% of the JPY currency (they will be forced to QE to locals to deal with currency collapse like Argentina leading to even more devaluation.
  2. NIKKEI225 Adjusted for Japan M3 supply showing more and more strength since the 1980s alerting local people are starting to lose faith in the Japanese Yen.
  3. This is no longer a "get Inflation lower story" it has started a sovereign debt and sovereign currency crisis. If people are unaware how much power and the FRED has in this situation, this could provoke the start of a new Cold War. What happens when the biggest holders of US debt Japan / China implode? the entire US bond system implodes.

Suddenly the countries like El Salvador getting their credit upgraded while the US credit gets downgraded are looking very smart right now.
End Game.

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