đš THE JAPANESE LIQUIDITY BOMB đŻđ”đŁ
âBofA is calling it: Japan might hike rates to 1.00% this April. We havenât seen these levels since the mid-90s, and if you think it doesnât matter, youâre missing the worldâs biggest "cheap money" engine. đđž
âWhy the Panic? đ
âJapan has been the global funding hub for decades.
âThe Carry Trade: People borrow yen for cheap to buy high-yield assets elsewhere.
âThe Unwind: When rates rise, that trade collapsesâand itâs never a smooth ride. đą
âHistory Rhymes đïž
â1994: The "Great Bond Massacre" wiped out $1.5 trillion globally. đ
â1995: The Dollar collapsed against the Yen, forcing the BOJ to retreat.
âLesson: When Japan tightens into a fragile system, things break. đ§š
âThe Ripple Effect đ
âJapan holds $1.2 trillion in U.S. Treasuries. If yields at home look good:
âMoney flows back to Japan đŻđ”đ
âGlobal bond demand drops đ
âFunding gets tighter for everyone đ«
âThis isn't just a rate hike; itâs a shift in the global financial plumbing. Markets are sleeping on this, but volatility is coming. âĄïž
âStay alert. Stay positioned. đĄïžđŒ #Japan #NAP #Liquidations #CPIWatch #Squar2earn $BTC
