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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: E_K_S who wrote (12884)8/12/2024 2:10:19 AM
From: elmatador  Read Replies (1) of 13775
 
Super-Cheap JPY means the Japanese are getting poor as their purchasing power keeps being eroded.
But the world got hooked on cheap JPY.
When Japan decided to reverse the situation, making the JPY expensive, those cheap loans needed to be paid in JPY. But with the JPY more expensive, Japan's BoJ Ueda crashed the market.
Japan BoJ governor Ueda had 2 choices:
1) Crash the market with a strong JPY
2) Keep the Japanese getting poorer
He chose 2).
Result: The Japanese worked hard for decades accumulating Forex reserves and ending up poorer.

Which brings us to the Chinese.
China copied the Japanese, i.e., model of exporting its way out of poverty. |But it does not look like they will copy the Japanese model of giving cheap loans to other countries.
How are they planning to do that? De- Dollarization.
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