YEN and BITCOIN are collapsing, the era of certain safe havens and E-coins have come to an end. Stagflation and interest rates, while Japan is stuck at negative 10% rate. The country could be priced out of existence, setting off a new Asian currency crisis.
The Chart 1 above is pretty much self explanatory, it shows the collapse of BITCOIN (BTC) overlaid with the collapse of the Japanese YEN, one, being a very speculative asset, which is BTC, that basically has no intrinsic value apart from what is assigned to its so called rarity of 'mining' these coins, that for the most part is a behemoth of electricity consumption i.e climate change overkill. The other is the YEN, which in the last 4O years has been considered a safe haven, a stable currency under the auspiciousness of Japanese monetary policy that doesn't like too increase interest rates. i.e they claim that the nation is stuck in deflation.
As of January 2022 the YEN is no longer the safe haven it used to be, the currency has collapsed over 50%, Chart 2 above shows the reasons why. Japan has negative rates at -0.10% (yellow line), quite possibly one of the most damaging economic, of the so called tools, a Central Bank can embark on, particularly when inflation and supply chains across the world are in dire straits. In simple terms, the country with the lowest rates will be, in global stagflation, priced out of existence. No one will want to hold your currency, rather, it would be sold for a higher yield and at this point, with the U.S. Federal Reserve having no choice but to trigger rates up over 2%, it is the U.S. Dollar. Purple line beneath showing U.S interest rates at 1.00%.
The era of lose momentary policy and speculation, like Bitcoin, is coming to an end, but also is some of the assets that for a prolonged period in time were considered safe havens, the YEN was one of them.
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