Since the United StatesSubprime mortgage crisisSince then, the United States has been constantly takingQuantitative easingpolicy, which led to a flood of dollars, for a roundCurrency warsPrepare. However, this strategy does not stop thereSubprime mortgage crisis, but it was used again after 2020 to stimulate the epidemicEconomyUnder the pretext, the dollar was printed on a large scale and injected into the market. As a result, the world's national assets continue to be the sameand the real estate market are at record highs, which are the result of the abundance of the US dollar**. Obviously, the United States has made sufficient preliminary preparations. Next, the United States initiatedCurrency wars, which will bring the dollar back to the United States through pump-type interest rate hikes, thereby weighing on the assets of other countries**. If this step can be successful, harvesting the dollar will be a logical one.
However, in recent years, the position of the dollar has weakened as countries have reduced their use of the dollarCurrency warsAnd it didn't go as smoothly as expected. Despite this, Japan has experienced a significant increaseJapanese Yendepreciation, and even fell below the 150 mark. This is because Japan has been ultra-loose for a long timeMonetary policy, which led to the Bank of Japan printing a large amount of money, increasing the amount of money, which in turn weakenedJapanese Yenvalue. offset with other countries through interest rate hikesThe Federal Reserve raises interest ratesThe impact is different, and the Bank of Japan still maintains an accommodative policy, or even maintainsNegative interest rates。Therefore,Japanese YenThe depreciation is relatively large and is likely to sink with the dollar. In addition, JapanEconomyStructure is also causedJapanese YenOne of the important factors of depreciation. Japan is facing structural problems, including an aging population, low growth, high debt, etc., in order to stimulateEconomygrowth,** massive fiscal stimulus was taken and further increasedTreasury bondsCirculation. Japan's current debt has more than three times its GDP, making it the highest debt ratio among major countries in the world. This makes investors interested in JapanEconomy's concerns intensified, further fueledJapanese Yendepreciation.
The United States passedCurrency warsImplement pump-style interest rate hikes to harvest the assets of other countries. This strategy is similar to bank-to-business loan financing, when a bank suddenly lends a large amount of money to a company, and the company receives financial support to expand production, increase production capacity, expand factories, and take on a large number of orders. The company's turnover and profits have increased significantly, and the stock price has also risen. However, if the bank suddenly tightens the monetary policy, stops lending or even recovers the funds, the business may face collapse and be unable to continue operating, and eventually be acquired by the bank at a lower rate. This is the process by which banks take advantage of bargain acquisition opportunities. And the dollar'sCurrency warsIt is a similar principle, by pushing up the assets of other countries, and then raising interest rates to make them, the assets are harvested.
However, in recent years, countries have reduced their use of the dollar, which has led to a weakening of the dollar's positionCurrency warsIt didn't go well. AlthoughU.S. dollar indexStart**, butJapanese YenThe magnitude is very limited. This may be due to the fact that the Bank of Japan did not raise interest rates in time and continued to remain accommodativeMonetary policyand even maintainNegative interest rates。Also, JapanEconomyStructural problems have also intensifiedJapanese Yendepreciation, including an aging population, low growth and high debt. For stimulationEconomyGrowth has been further increased by massive fiscal stimulusTreasury bondsCirculation. Today, Japan's debt has more than tripled its GDP, making it the highest debt ratio among major countries in the world. This makes investors interested in JapanEconomyThe concerns intensified, which in turn led to a response to theJapanese YenThe selling pressure was pushedJapanese Yendepreciation.
U.S. dollar indexA break above the key support level of 103 means a further decline in the dollar's position. This also givesJapanese YenFollow the opportunity to sink, thoughJapanese YenThe current ** range is limited. AmericanCurrency warsIt did not go as smoothly as expected, and the harvest effect of the dollar was not obvious. At the same time, Japan'sMonetary policyThere is a clear difference with other countries, resulting from the long-term implementation of ultra-loose policiesJapanese YenSignificant depreciation. Plus JapanEconomystructural issues,Japanese YenFacing the risk of sinking.
AlthoughU.S. dollar indexSlide, howeverJapanese YenThe depreciation was relatively limited. This may be due to the fact that the Bank of Japan did not raise interest rates in time and still maintained its accommodative policyNegative interest rates。At the same time, Japan'sEconomyThe structure also ledJapanese Yendepreciation. Japan is facing structural problems such as an aging population, low growth, and high debt, in order to stimulateEconomygrowth,** massive fiscal stimulus was taken and further increasedTreasury bondsCirculation. This led investors to JapanEconomy's concerns intensified, which in turn boostedJapanese Yendepreciation. Therefore,Japanese YenIt is likely to follow the dollar to sink.
in the current oneCurrency wars, the dollar is at risk of slipping in status, whileJapanese Yenis under pressure to depreciate. The U.S. monetary strategy has not had the desired effect and may need to be reassessed. At the same time, Japan needs to speed upEconomyStructural adjustments, reducing dependence on ultra-loose policies to alleviateJapanese YenRisk of depreciation. Overall, the breakout of the dollar and the yen requires the presence of various countriesMonetary policywithEconomyStructural adjustments are made to avoid over-reliance and imbalance.
U.S. dollar indexA break above the key support level of 103 marks a further decline in the dollar's position. WhileJapanese Yenis facing depreciation pressure. The United States takesQuantitative easingPolicy, the constant printing of dollars, and the flood of funds caused by massive injections of funds have pushed up global assets**. After that, the United States initiatedCurrency warsto harvest the assets of other countries through pump-type interest rate hikes. However, in recent years, countries have reduced their use of the dollar, which has led to a weakening of the dollar's positionCurrency warsIt didn't go well. Japanese YenThe main reason for the depreciation is Japan's long-term ultra-loose policyMonetary policy, plus JapanEconomyStructural issues, investors on JapanEconomyThere are concerns, pushedJapanese Yendepreciation. Although in recent yearsU.S. dollar indexJapanese YenThe ** range is limited, butJapanese YenStill at risk of sinking. CurrentCurrency warsCountries need to be inMonetary policywithEconomyStructurally adjusted to meet the challenges.