🇯🇵 JAPAN IS PLAYING A VERY DANGEROUS GAME HERE.
Currently, Japan is exploring ways to encourage its state pension funds to increase investments in domestic assets, which includes shifting capital into government bonds and even Japanese yen.
This is why Japanese bond yields are dropping hard while yen is strengthening a bit.
But this is all just a short-term thing.
Poland and Argentina have already tried this before, and they failed miserably in the long term.
Not only that, this move pushed the government debt onto their citizens.
Japan is thinking of doing the same, and it won't change anything in the long term.
Bond yields will rise again, the yen will continue to devalue, and economic growth will slow down.
And in the end, there'll be a recession or even a depression in Japan.
