FRED Are Done Raising Rates -- Raise Rates? Japan Collapses.
Japanese Currency Strength is back to 1987 levels
Japan is the main source of YCC for the USA buying down bond Yields
If USA raises rates any more Japan will be in free fall collapse (hyperinflation)
They need to pause at worst start reducing rates.
My guess?
Money printer is coming back and will come back fast to save the Yen, this is not just a "Asian currency" this is the single weak point for the entire US bond system if the Yen goes the US bond yields go ^^^^^^^^^^^^^^^^^^^^^
Japan cannot tap out and raise rates, Japan cannot ditch the Yen and adopt the US Dollar, Japan is in some serious trouble here.
All Japan can do is continue to issue "Stimulus Packs" that is making the M3 go parabolic that leads to serious inflation. Now what happens when a country issues unlimited Stimulus Packs and cannot raise interest rates?
Expected.