>US is dumping Euros to buy Yen so Japan stops selling American bondsThis is the funniest shit. We are in for a BIG ONE.
the world is ripping us offnow it's time for payback
>>62548443that's very smart actually.and you can trust me I'm an expert**in jav.
>>62548443A task force would fix this
>>62548443Why is Euro mooning then?
Probably a good thing for the EU honestly. They’re already struggling with exports and not would be good for their currency to be a little more competitive in that regard.
>>62548467*it would be good. Can’t type tonight
>>62548448IDS NOT FWAIR>>62548456It won't save the Yen and it won't compensate all the American bonds Japan has in their treasury. Japan has 1100B in american bonds while America has 14B european bonds. No way you can mitigate them.Trump is pissing off Europe for nothing.
lmao, they're rebalancing currency reserves like it's a fucking stock portfolio...
>>62548475Trust the planAfter the great success of the one day special military operation in Iran we move to the next phase in the master Plan.
>>62548475Remember one very important thing: trump and trump alone has the levers to unleash a financial doomsday for the rest of the world, which sure will hurt the US to a degree but nowhere near how it'll hurt others
>>62548475the goal is to increase the value of the yen.the US only needs to buy enough to make it worth for the japs.it's basically like telling your boss you are ready to work for half your salary before he fires you.
Europe is dead. Its over. It’s literally over. Europse will slowly degrade it meaninglessness as china/russia/mediterranean encroach on their space. No money is will to invest in these countries, if you love western culture you put your money into the north American continent. Because of this ricky nature russia and everyone is able to push into the territory. Europe fucked itself snd we warned them for decades but they didnt listen. They actually became dependent on these encroaching powers kekEveryone looking at japan but US is dumping europe with no survivors. This is just the beginning. If you live in europe you better gtfo in the next few years
>>62548495yeah sure buddy. the Chinese Yuan would snap everyone up for pennies
>>62548506I disagree. Europe is pathetic and poor, but stable and a good place to live. Their lack of economic growth will make the global crash less painful for them.
>>62548495And Putin could bring the nuclear apocalypse yet he will not
>>62548448>the world is ripping us off>now it's time for paybackt. every country in the world at the same time
>>62548506europe has a lot of room for improvement but you are pants on head retarded if you think russia is encroaching anywhere except towards becoming a chinese vassal
>>62548519> less painful for them.No AC in summer and shortage of natural gas in winter.
>>62548563>europe has a lot of room for improvementthis, there's room for at least 200 million more elite brahmin talent
>>62548448sideways pussy
>>62548443i bought yen at the top lm literally a genius
dump pounds and canadian dollars tooif the pound is parity with dollar I can buy cheap warhammer shit assuming cheeto faggot stops tariffing the uk
>>62548622>le cheeto fuck!Gb2 reddit. Your girlboss lost the election and youre still mad lol
>>62548630Trump has repeatedly insider traded the market, dumped on everyone and started a war for israel in iran while talking about how D day and the draft are le basedI'm pretty sure he is a faggot who loves jew dick, as do you probably.
>>62548443How is this a bad thing?
>>62548780its not a bad thingtechnicallyits kinda cringe though
>>62548460I am using it unlike yen
>>62548506Is this satire?
>>62548636Dude it's been almost two years now. She lost and never had a chance after they tried to cover for Biden's health issues. Get over it and move on with your life.
>>62548443>US>Euros>YenWhat a fucking disgusting sentence. All because Japan being a pathetic vassal state with a China tier currency approaching. Surprised euros aren’t raising more of a stink on this.
>>62549058>Surprised euros aren’t raising more of a stink on this.....You can't complain when another country's central bank sells their assets. That's as retarded as if the American government made a stink about the French withdrawing gold from the federal reserve.
>>62548495you mean like fucking up the straight of hormuz?
>>62548443It's not gonna be a big one
>>62548459sending 1B to Israel fixes this
>>62548443>BIG ONE.Big what?>>62548600kek
>>62549058wtf do euros get used for? pickpocketing?only relevant currencies in the world are USD and CNY
>>62548443kike business as usual >>62508806
>>62548485We will EVOLVE *handgestures* into some MUCH greater. It's FIVE-D chess, if you will.Nobody saw this coming *hand gestures*. TRUST me, some very smart people have thought this all out. Iran never saw this coming. Hey, can you stop eating my bananas? They're all mine. You can't have them.
>>62548443If the US used this global form of QE in USD, this would dilute global USD reserves and trigger diversification away from the USD because other countries would need to insulate their economy from the export of US inflation. By using the EUR, they avoid this completely and achieve the outcome they want which is the propping up of a financial structure that the US needs, but the market can no longer sustain, while also avoiding further inflation through USD devaluation.Fucking lmao, this is voodoo economics. The US is using whacky, and dangerously unserious macroeconomic tools to bring dead markets on the other side of the world back to life. This is absolutely fucked. Zombie QE in Japan is a great depression indicator.This'll be a big one.
>>62548448What the fuck are you smoking? US external debt is 30 Trillion dollars. That means you’ve taken in 30 Trillion in goods from the world and issue 30 Trillion IOUs in the form of dollars. Which you continually debase. You’re exporting your inflation to the globe. It’s a situation that’s coming to an end. You need only take a look at last 5 months of largest category of exports. Gold is becoming the largest suddenly in Q1 and Q2 combined. The world isn’t taking paper (dollars treasuries same thing) anymore. They want something real. And in the face of not needing anything the US wants bar aircraft or oil. It’s GOLD. Bloody fool.
>>62548448The US is literally scrambling.Japan is the largest foreign holder of US debt. Also, a lot of the big institutions in the US market borrow yen to purchase American stocks. Known as the "carry trade". There is a ton of money intermingled between the two economies. Japan can save its market by selling US bonds, but that would royally screw the US over something fierce, which is why the US is now trying to prop up a dying market.Japan is critical to the American economy. If japan goes down, America goes with it. For better or worse, we are attached at the hip. So, this intervention isn't that surprising. The Euros are the only smart ones.
>>62549232> inflation. By using the EUR, they avoid this completely and achieve the outcome they want which is the propping up of a financial structure that the US needs, but the market can no longer sustain, while also avoiding further inflation through USD devaluation.Until the Eurozone starts selling its large dollar bonds to defend the currency. This is how FIAT systems have their demise eventually. The cannibalise one another. Central bank wars have begun. Ultimately they will all need to up their gold reserves at their central banks to give confidence to back their currency or see it fail. Who’s first though. Of the big boys. Who’s the weakest link. Net International Investment Position (NIIP) is most important weight. Measures whether the country owes the rest of the world more than it owns abroad. Persistent deficits create currency vulnerability. TLDR the UK is in deep shit.
>>62548460this, shouldnt the € dump relative to the $ ?
Hope you have some PMs, fiat may be temporarily giving countries the ick
>>62549273They haven’t done it. It’s called jawboning. They’re threatening to do this and rate checks. To try frighten forex madlads. It’s the same obvious shit as Bessent “accidentally” leaving his dastardly plan on a note on the desk and some cagey journo just “happened” to snap it. What a load of bollox. They are in a little panic. They are stuck. Monetarily, fiscally and geopolitically in Iran and Ukraine. > A rate check is when central bank or government officials call commercial banks or currency dealers to ask for live price quotes on buying or selling a specific currency. It serves as a strong warning signal to the financial markets that authorities are unhappy with exchange rate movements and might soon step in to trade. You’ll see it in the currency pairs if it happens. And there will be a retaliatory measure from the ECB if they do. Central Bank civil wars are already here.
>Japan frantically selling dollars because it's being grinded to dust by inflation and the interest rate on debt>HEY YOU GUYS THATS NOT FAIR! AND FUCK EUROPE TOOI think the biggest financial risk we face is that the major free market economies don't coordinate. If we had another 2008 crash then there's no way we're going to get a new Basel III or synchrony on bailouts and interventions in the immediate aftermath. We probably won't even see a relative economic peace seen in 2020 - everyone will just chimp out at each other and lock us in a doomloop.>>62548460Because the USD and Yen are too high.
bumping this thread because you people seem like you know what you are talking aboutas a burger, how do I prepare for this?assume that i already down around $30k worth of physical precious metals and some foreign oil and mining stocksset my 401k to a foreign stock ETF?stockpile beans?debtmaxx into physical precious metals and latin ameican real estate?
>>62549385I keep 50% of my liquidity in gold. Rest I play in the markets. Stay out of debt (unless it starts to hyper inflate then borrow as much as you can Kek). Don’t be 100% committed. Keep some cash I. Hand. 25% gold is probably enough though. It’s insurance against shit going really badly. And of course has performed amazingly for me these last few years.
>>62549385Diversify your stock holdings. That's it.
>>62549122lmao so hard at that pic
>>62549241Damn I had no idea that was the largest export. That seems bad.>That means you’ve taken in 30 Trillion in goods from the world and issue 30 Trillion IOUs in the form of dollarsYes, but they can take those dollars and still buy things with it like US company stock or real estate. Unfortunately that means that more and more of our businesses and real estate becomes foreign-owned. We’re exchanging cheap Chinese trinkets for some of our most valuable assets.
>>62549122a ONE. It will be BIG.Joking aside, the yen carry trade will obliterate stocks and crypto while raising American interest rates which make buying homes much more expensive which leads to falling home prices. Many families rely on their assets for their spending so a reduction in their home value will lead to lower consumption and thus recession territory.The fact is that we don't know how much will the central banks intervene to adress the issue of sovereign debt. They could print money and pay the debt quickly but that would lead to massive inflation and a surge of revolutionary sentiment across the world and no country wants that. Commies will laugh at America and Japan while praising China but China is also in the same situation of the cost of living getting too high due to inflation and a massive debt bill in the government treasury.If they opt for not printing money our governments will have to cut spending to borrow at lower interest rates. With governments making up 40%-60% of the GDP of most modern countries a simple 5%-10% cut in spending would bring a massive recession. In my opinion this is the best choice, a swift, hard crisis that would burn dead wood in our government budgets. Of course there is the counterpart of raising taxes to balance the budget which won't be received well unless governments cut their spending too. >>62549385I'm 85% liquid now. If central banks start printing I will just buy BTC. I don't want to buy anything before the storm hits.
>>62549385Crazy as it sounds, keep some cash. Let it earn 4% and chill. Somewhere between 25% and 75% cash, depends on your situation. Don’t sell your gold. I just bought some more. It might get cheaper in the next year but then again it might not. Stocks are pretty risky right now, crazy valuations. I’m not super bearish on stocks, I think you have to account for future inflation and currency devaluation and the forward p/e isn’t so bad but with everything that’s happening I think we’ll have a pretty good correction still and I want cash to buy the dip. AI is overvalued. People point to Microsoft and say hey look they’re making money on their huge capex but they’re really cooking the books. They’re assigning a 25 year depreciation life to their data center hardware, lmao. Since when do maxed out gpus last 25 fucking years. This shit is going to unravel, Japan carry trade will probably unravel, and the oil situation is going to fuck things up bigly. That’s like 4-6 months out though, not two weeks like everyone keeps saying.Why is the market not pricing anything in? Because it’s 90% traded by algorithms that see things go up and so they keep buying. They don’t read the news or understand macroeconomics. Also, gamma squeeze:How a Gamma Squeeze WorksCall Buying: Investors buy heavy volumes of call options, often out-of-the-money.Dealer Hedging: Market makers sell those calls and must buy the underlying stock to remain neutral (delta hedging).Rising Delta: As the stock price ticks up, the option's sensitivity (delta) increases, forcing dealers to buy more shares.The Acceleration Loop: Higher stock prices trigger more dealer buying, which pushes the price up further in a continuous loop.
>>62549437it seems that there are too many variables in play. Right now I am extremely overexposed in gold, Like more than 50% of my assets that aren't land. Then some in ETFs and stocks. And a big chunk in cash. Not so sure how to shift the balance right now. I am not happy with so much cash at hand, so I was playing with the idea of putting some of it into bonds of various states. At least for a year or so.
>>62548460Interest rates and expectations of future interest rates
>>62549246What is if trump want high yield?
>>62549349Japan has functioned as an economic doormat for a long time now but now things have gotten so econonimcally dire for the average person that it's simply no longer politically viable, no matter how much pressure Washington puts on Tokyo
>>62548495The entire US economy is built on international trust, it would absolutely hurt the US more.Not that it matters much now, since Trump has already eroded a lot of that trust.
>>62549428>and still buy things with it like US company stock or real estateLol
>>62549437interest rates being high is specifically why home prices are so high
>>62549717interest rates being low*my mistake
>>62549437The carry trade wound down a year ago and the big drivers of growth are AI in companies that have much better fiscal breathing room. Enjoy sitting out on growth /pmg/fag.>>62549639Japanese people are irrelevant. The Zaibatsu needs cheap Yen to power exports and the politicians just throw a bone to consumer sometimes to win elections while hammering down the interest rate to keep the system running.
>>62548443if this was true, then why did the Euro go up instead of down?a: because it's made up bullshit
>>62548443Am I safe in USDC??? That’s my biggest holding atm
>>62548443DEVS DO SOMEHTING
>>62549805It's not the case anymore. Japanese companies need to import materials to make things and the weak yen is a problem for that. Imagine costs of petrochemicals, inert gasses, and metals spiking and your holdings in yen depreciating against that even further. There's a lower bound and there absolutely is political pressure domestically against rising prices.
>>62548443>>62550455it's fine.the yen will be +50% at the end of the month.
>>62550162Because the dollar is weakening, tariff-driven uncertainties and other political uncertainties cause investors to offload US holdings and look for stability in European markets, driving up demand for the euro.
Pathetic nip vassal state
OOOK AAAK
>>62549246Aren't the Cayman islands the number 1 foreign holder of US treasury debt? I thought the fed recently had to admit to that.
>>62548495China has a lever too, in the form of US assets that they hold and could dump at any time. The US doesn't have the leverage you think it does. It also cannot afford for an asset crash because it would decrease reciepts. This sort of thinking is why we are losing to Iran.
>>62554340#4 ranking but have been buying a large amount of bonds relatively in the past 24 months.
>>62548460other countries are slurping.
>>62548836He misses the mark: The problem isn't Russia. Putin is a shithead, that better gets his head removed from his shoulders, but he isn't going to get Europe killed.Europe's problem is an elite in Brussels, that doesn't work for the people in the EU-member nations, but that lives in a completely parallel world, detached from reality.Especially the EU commission is starting to give off a distinct "ancient regime"-stink: La démocratie c'est nous! No matter, what the fascist voters say.
