0 sats \ 2 replies \ @02bcd3eeb0 24 Mar \ parent \ on: Japan's central bank in its own grave econ
Printing yen to buy USD to buy USTs yielding >4% in dollar terms? It's like the best thing they could do. They are speculative attacking the yen, to buy harder assets, weakening the yen to inflate away the debt, and make their exports cheaper.
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0 sats \ 1 reply \ @Satosora 24 Mar
How does this help Japan? The US dollar inflation is like 10%. In what way does 4% yield a better return than the inflation that is happening at 10%? Im sorry, but your math isnt mathing.
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0 sats \ 0 replies \ @02bcd3eeb0 24 Mar
Why would the Japanese care about US inflation? JGB rates are 0%. The yen has lost almost 40% of its value against the USD in the past 5 years. 4% USD yeild is fantastic for them.
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