On the depreciation of the yen

When the yen began to depreciate sharply last week, many people said that the Japanese economy collapsed, but I said at the time that the depreciation of the yen may not only bring about an economic collapse. On the contrary, the yen's unique positioning for itself is to focus on "small profits but quick turnover", using the low-price route to achieve better liquidity and applicability.

The recent depreciation of the yen has directly opened the horn of the United States' economic plunder in the Asia-Pacific region, but under the depreciation of the yen, we can see from the data that the Japanese government is still issuing a large number of treasury bonds and actively selling yen, causing the yen index to fall faster.

Everyone thinks that the economic bubble collapsed due to the depreciation of the yen. After a week, we see the rise in Japanese housing prices and the strength of the Japanese stock market. This shows that the yen assets linked to the yen themselves are inconsistent with the depreciation of the yen at the current stage. In other words, yen assets are currently in a state of undervaluation.

Why does the Japanese government force the yen to take the depreciation and low-price route?

1. Increase the amount of yen released, the amount of circulation, and the amount of use.

2. Absorb foreign capital from the entire Asia-Pacific region into Japan, reserve it, and facilitate future harvesting. At the same time, it also draws liquidity from foreign capital in the Asia-Pacific region, which puts pressure on the economy of some regions.

3. However, from the perspective of the yen against the US dollar, the depreciation of the yen has increased the strong low position of the US dollar.

The Japanese government has released a large amount of currency. Will the depreciation of the yen bring inflation?

Yes, but Japan has just ended the era of deflation, and the short-term inflationary pressure is smaller. At the same time, the Bank of Japan is in a state of raising interest rates, which will also suppress inflation in disguise. The previous concerns about the invasive inflation brought to Japan by the US dollar interest rate cut are now reduced due to the uncertainty of the US interest rate cut.

So if you look at it from this perspective, Japan, which seems to be harvested by the United States first, is actually not so pitiful. It may also be a core breakthrough for the United States to plunder Asia-Pacific resources.

#大盘走势