🚨 MARKET ALERT: THE JAPANESE "DOOM LOOP" IS ACCELERATING 🚨
The Bank of Japan is no longer the world’s "quiet" lender. Bank of America predicts a hike to 1.00% by April a level Japan hasn't touched since the mid-90s. If you think this is local news, you’re missing the forest for the trees.
Why the World is Shaking (The "Carry Trade" Crash)
For decades, Japan has been the global source of "free money." Investors borrow Yen for nothing and dump it into U.S. Tech, Treasuries, and high-yield assets. That trade is now reversing.
* The 1994 Ghost: The last time rates hit this zone, we saw the “Great Bond Massacre,” a $1.5T wipeout that sent shockwaves through every asset class.
* The $1.2T Pressure Cooker: Japan is the largest foreign holder of U.S. Treasuries. As their local rates rise, they don't just "stop buying"—they start selling.
* The Nuclear Yen: In 1995, USD/JPY collapsed to ~79.75. When the Yen goes vertical, global funding costs skyrocket, and the "cheap money" era ends instantly.
We are watching the tightening of a fragile, over-leveraged system. Markets are still sleeping on the transmission mechanism:
* Yen Carry Trades unwind violently.
* Global Liquidity evaporates.
* Risk Assets (Stocks/Crypto) reprice in real-time
The warning lights are flashing in the funding markets. I’ll keep you ahead of the headlines before the 1.00% reality hits the tape.
