Japan’s Warning: Central Banks Are Losing Control
And so the degree of freedom is the currency. And this is the reason why the dollar has been hurting so much. And if you look at recent experiences with other countries like Japan, which effectively has had yield curve control YC in place, they spent years bluffing saying, “Okay, the 10 years 0.1% yield.” Why? Because I said so. And people believed them until one day the market said, “Really? Okay. And we went to 25 bits and they had to intervene. And once they intervened the market and they printed more yen and the people realized, okay, what’s happening? Dollar yen went from 117 to 124 instantly and then to 160. So we experienced, you know, 40 50% currency devaluation as a result of this spiral. You know, you could argue this is a US problem and I would say no. It’s actually a global problem. Every every central bank, every government is abusing and monitoring fiscal. and what we’re experiencing in Japan, what will happen in Europe where we already have yield of control de facto.
Diego Parrilla explains how global currencies are unraveling under the weight of endless deficit spending and central bank interventions.
In this powerful clip, he breaks down the real impact of yield curve control, using Japan’s monetary experiment as a cautionary tale for the world.
What happens when markets no longer believe in the credibility of fiscal and monetary authorities? From the yen’s collapse to rising doubts about the U.S. dollar, Diego reveals the mechanics behind sudden currency devaluations – and why similar crises could hit other economies next.
This isn’t just about Japan. It’s about a global system on the edge.
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