🚨A potential risk that many people overlook: If the Bank of Japan really raises interest rates to 1%, the global market's "invisible leverage" could be triggered. Why is this not a simple matter? Over the past few decades, Japan has been almost the epitome of the lowest interest rates worldwide. Cheap yen has become the most important "financing tool" for global capital. The funding logic is straightforward: Borrow cheap yen → exchange for dollars → buy US stocks, bonds, and crypto assets.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
🚨A potential risk that many people overlook: If the Bank of Japan really raises interest rates to 1%, the global market's "invisible leverage" could be triggered. Why is this not a simple matter? Over the past few decades, Japan has been almost the epitome of the lowest interest rates worldwide. Cheap yen has become the most important "financing tool" for global capital. The funding logic is straightforward: Borrow cheap yen → exchange for dollars → buy US stocks, bonds, and crypto assets.