Warning: A Major Storm Is Coming

According to Bank of America and the Bank of Japan, interest rates are expected to rise to 1.00% in April. Japan has not been at a 1.00% interest rate since the mid-1990s. And if you think Japan doesn’t influence the global market, YOU ARE COMPLETELY WRONG. Let me explain this in simple terms: The last time Japan was at this interest rate level, the world was affected. In 1994, the bond market was devastated in the “Great Bond Massacre,” with approximately $1.5 trillion in bond market value wiped out. Then, in early 1995, pressure continued to build. And the yen plummeted. On April 19, 1995, the USD/JPY exchange rate hit around 79.75, the lowest level for the dollar. And here’s what people often forget: Japan tried to raise interest rates, then had to CUT rates again later that year. The Bank of Japan (BOJ) lowered the discount rate to 0.50% in September 1995. Just this one fact explains a lot. Because when Japan tightens monetary policy in a fragile system, its impact is not limited to a “local” scope. Japan is a CENTER OF LOW PRICES. And Japan holds a massive amount of government bonds worldwide. Japan owns about $1.2 trillion in US Treasury bonds. So, if Japan tightens monetary policy, the whole world will feel it through capital flows and financial movements. THIS IS A WARNING. Not because “interest rates are rising.” Because the last time we were here, the system was under pressure and had to react quickly. The market has not reflected this yet. But it will. I have studied macroeconomics for 10 years and have accurately predicted most major market peaks, including Bitcoin’s all-time high in October. Stay tuned and turn on notifications. I will post alerts BEFORE they become hot news.