Via Greg Hunter’s USAWatchdog.com,
Eight-time, best-selling financial author Jim Rickards is warning of a financial calamity already underway that Treasury Secretary Scott Bessent is trying to contain. It is the Japanese yen carry trade where the US Treasury is propping up the yen’s value.
Is the yen carry trade coming to a halt and can it blow up things? Rickards says, “The answer is yes and yes..."
"Somebody wrote me and asked if the yen carry trade is a big deal? I wrote them back and said there is nothing bigger. This is actually the biggest story in the world.”
In simple terms, the problem is people have been borrowing at 0% in yen to do deals around the world. Everything was fine until interest rates in Japan started going up after more than two decades. Rickards says, “This is the engine of global economic growth. It has been powering the US economy and the global economy for over 30 years. What could go wrong?"
" The thing that could go wrong the fastest is if Japanese interest rates went up. . .. The bank of Japan says it is going to keep raising interest rates. It’s not going to the moon, but 3% for yen (and Japanese) interest rates is like going to th
