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Posts Tagged: “carry trade“

August 12, 2026 ・Original Analysis

Why the FIMA Repo Facility Can’t Save Japan (Or the U.S.)

Japan’s long experiment with near-zero rates and relentless deficit spending is hitting its limits, and the consequences are eventually going to hit U.S. markets. The yen’s slide toward levels not seen in decades forced Tokyo into repeated interventions, and for the first time since 1998, Washington joined in to save the U.S. and the world […]

May 28, 2025 ・Original Analysis

Japanese vs. US: Which Are More Cooked?

No one wants Japan’s sovereign debt.  The global sovereign bond collapse appears to be rapidly worsening. The Bank of Japan (BoJ) owns more than half of its own government bonds, desperate to prop up the economy by buying domestic debt that nobody else wants. But no central bank can prop up an economy forever.