Eurodollar University Japan is PLUNGING and it’s Quickly Spreading to the Rest of the World
Apr 17, 2025
Japanese government bond yields are dropping, signaling economic distress that could ripple globally. The yen is gaining strength amid fears of a downturn linked to AI developments and trade uncertainties. There’s growing pessimism among business leaders about interconnected global market instability. The podcast delves into how tariffs and trade policies affect the fragile semiconductor industry, illustrating the precarious balance of the global economy.
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JGB Yields as Global Indicators
- Japanese government bond (JGB) yields offer insights into the global economy.
- Recent declines signal a potential downturn, similar to trends observed before past crises.
Tech Stocks and SOX Index
- The decline in tech stocks, mirrored by the SOX index, signals global economic fragility.
- These indicators warned of trouble before trade wars became a concern.
Fragility Over Trade Wars
- Global economic fragility, not trade wars, is the core issue.
- Central bankers initially dismissed concerns but will likely react to data eventually.