Japan Finally Raised Rates (The QUIET End of Free Money)

Описание: For thirty years, Japan offered the world unlimited cheap money. Hedge funds borrowed it. Pension funds depended on it. Entire asset classes were built on it. In March 2024, the Bank of Japan raised rates for the first time since 2007. The world's largest creditor nation just changed the price of global risk.



This video examines one of the most underappreciated structural shifts in modern finance. Since the 1990s, Japan's ultra-low interest rates created what economists call the yen carry trade—a mechanism that allowed investors worldwide to borrow cheaply in yen and deploy capital into higher-yielding assets across the globe. U.S. Treasuries. European bonds. Emerging market debt. Real estate. The trade grew into one of the largest single-currency funding positions in history. Now, returning inflation has forced Tokyo's hand. The Bank of Japan is normalizing policy for the first time in a generation. This is not a crisis. It is arithmetic. When domestic yields rise, Japanese capital—over three trillion dollars held abroad—faces new incentives. Repatriation becomes rational. And when the world's largest creditor begins pulling money home, the world's largest debtors feel it. This video traces the mechanism, the historical parallels, and the quiet repricing now underway.



*WHAT YOU WILL LEARN*

• The Carry Trade Mechanism: How borrowing in yen at near-zero rates funded risk assets across every major market for three decades.

• The 1998 Warning: Why the collapse of Long-Term Capital Management revealed the hidden fragility of yen-funded leverage.

• Japan's Creditor Position: How a net international investment position exceeding three trillion dollars gives Tokyo structural influence over global bond markets.

• The Repatriation Math: Why rising Japanese rates create incentives for capital to flow home—without a single dramatic announcement.

• The End of the Subsidy: What global finance looks like when Japanese savers stop accepting near-zero returns.



DISCLAIMER: This video is for educational purposes only. It does not constitute financial advice. Macroeconomic analysis involves probabilities, not certainties. Viewers should consult with a qualified financial advisor before making investment decisions.



* ABOUT THE CHANNEL*

THE UNTOLD ECONOMY explores the hidden mechanics of power, money, and crisis. We deconstruct the crashes, wars, and policy mistakes that shaped the modern world, strictly focusing on the period from the 1850s to today. This is not news; this is a forensic analysis of why systems fail.



#TheUntoldEconomy #JapanEconomy #CarryTrade

Economics, Geopolitics, Financial Crisis, History Documentary, Money, Economic Collapse, Japan Interest Rates, Bank of Japan, Yen Carry Trade, BOJ Policy, Japanese Economy, Global Bond Markets, Monetary Policy, Currency Markets, LTCM Collapse, Yield Curve Control, Capital Flows, Debt Crisis, Central Banking, Financial History