AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Navigating US Deficits: Japan's Strategy and Impact on Treasury Market
This chapter delves into Japan's approach of seeking swap lines instead of selling treasuries to support US deficits, emphasizing the importance of these lines in financing deficits and their potential effects on treasury yields. The conversation highlights the dynamics between the yen's strength, dollar yen rates, and treasury performance, underscoring Japan's advantages. It also explores the interplay of AI technology in the fractional reserve system, the implications of wage deflation, and the necessity for central banks to fully reserve debt, shedding light on investment strategies for the changing economic landscape.