Biden just destroyed Japan - what's it mean for the US?

[DarthTrader]

Yes, this is true for America, but what did he have to do with Japan???

That's a more complex topic but it DIRECTLY affects Japan. Mostly through "Carry Trades".

Selling bonds = rate hikes.

Because the US bond yields are astronomically higher than Japan's, Japanese Yen holders are selling Bonds short (on margin) to buy US Treasuries. This is called a carry trade.

The wider the spread, the better the trade.

It forced Japan's bank to buy buy buy buy Japanese bonds to avoid Japan's rates also hiking.
Well today Japan ran out of money. Had Biden's STUPID FYCKING ASS not wanted a 75 BP hike, maybe Japan could have held on....

The trick is the rate - not the total amount - the speed was TOO FUCKING FAST

 

[DarthTrader]

This is just the start it took raising rates to horrible levels to kill the Carter inflation. The car loan I got back then was fifteen percent.

This is not the same at all.

This is the Great Depression. The FED raised rates into the Great Depression thinking they were battling inflation and ended up with -12% GDP per year and deflation.

 

[okfine]

Go figure, the most powerful office of the most powerful economy and military in the world, with the most money in the world...happens to have some power

Fyck off moron.

Biden intentionally fucks over our best and strongest ally in Asia. Fuck you.