We Study Billionaires - The Investor’s Podcast Network BTC084: Japanese Yield Curve Control, Oil, & Bitcoin Macro w/ James Lavish (Bitcoin Podcast)
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Jun 29, 2022 
Join James Lavish, a finance and macroeconomics expert, as he dives into the complexities of Japan's yield curve control and its impact on global markets. He discusses the rapid financial shifts in crypto, emphasizing Bitcoin's stability amid tumultuous conditions. Lavish also addresses the cooling housing market and inflation trends, pondering if it has peaked. You'll hear insights on the geopolitical implications of BRICS nations considering a new currency to challenge the US dollar and the importance of financial education in understanding these dynamics.
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Japan's Yield Curve Control and Yen Instability
- The Japanese Yen's instability is escalating due to the Bank of Japan's yield curve control policy.
- This policy, by keeping 10-year JGBs at 0.25%, pressures the Yen as investors sell JGBs and the Yen they receive for them.
Japanese Bond Market Instability
- The Japanese bond market shows signs of instability outside the Bank of Japan's trading window.
- Institutional traders are shorting Japanese bonds, betting that the Bank of Japan will have to abandon its yield curve control policy.
Potential Global Contagion from Japan
- If the Japanese bond market collapses, central banks might resort to easing.
- This could lead to global contagion and impact major banks with exposure to Japanese debt.
