Why I’m Incessant about the Japanese Yen Crisis these Days

1. It’s a model showing us how the great global fiat currency debt system is consuming itself in real time.

Japan is a top 5 global currency and the 3rd largest economy in the world. It matters!

2. Japan spent nearly $60 billion over the past 3 days buying their yen to raise its exchange rate against the dollar.

This currency intervention (Yentervention) only raised the yen/dollar rate by a whole U.S. 5 cents.

And this yen gain is being erased as I write this.

Imagine spending $60 billion for a meaningless 5¢ improvement.

3. The only way to meaningfully strengthen the Yen/USD rate is to raise Japanese bond interest rates.

But this will send the country into debt default given the staggering level of sovereign debt Japan has taken on.

4. Technically, there’s no way out. Japan’s two choices are, sovereign insolvency or currency hyperinflation.

5. This financial no-win situation is exactly how every fiat currency regime throughout human history has collapsed to zero value.

Every single time.

6. Japan is going through what every global fiat currency will experience at some fateful point.

It happens slowly at first, then all of a sudden.