🚨🚨🚨Japan raises interest rates, who will be the next domino to fall? !
Back then, the Bank of Japan played with negative interest rates, lending you money and paying back, like giving it away for free. Imagine that it's like you can buy a truckload of milk at a super low price in Japan, and then resell it to places like the United States and Europe where milk is expensive, and easily make a profit from the price difference.
In recent years, many financial experts have done this. They first borrowed a bunch of cheap yen from Japan, then exchanged them for dollars or euros, and then invested in the United States and Europe, especially in places with high interest rates, such as buying U.S. bonds and speculating in U.S. stocks, especially those hot chip stocks, and made a lot of money. This arbitrage game is so good that even Buffett has joined in, although he used yen bonds to invest in the Japanese stock market at his doorstep.
But do you know? When this arbitrage game reaches hundreds of billions or trillions, the energy is terrifying! But suddenly one day, Japan said: "We don't want to play anymore, we have to raise interest rates!" With this rate hike, fewer people borrowed yen, and Japan was eager to get its "milk" back. The market saw that the wind was not in the right direction, and immediately panicked. No matter what, they sold first, so the global financial market fell like dominoes. This is why the global financial market trembled as soon as Japan raised interest rates. Family members, don't panic. The most frightening thing about trading is that you are there when it falls, but you are no longer on the table when it rises! One good thing about the currency circle is that as long as you don't lose everything, you will never give up your faith. There is a fresh and active one on BN that is about to start a surge, and I have repeatedly mentioned it to old fans in the past few days. Cooking pages into the village
