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In recent years, Japan's economic development has been lagging behind, and the national economy is facing very severe challenges.
Originally, Japan's economy was one of the best in the world, especially in the manufacturing industry and technology production, and its industrial development ranked among the top in the world.
Since the bursting of Japan's economic bubble, Japan's overall economic situation has been getting worse and worse.
Before entering the 21st century, Japan was at the top of the global GDP rankings.
However, in the 21st century, Japan has ranked among the negative global GDP figures in the GDP ranking.
The Bank of Japan has been facing deflation in Japan, and in order to increase the speed and development of the Japanese economy, the Bank of Japan has been adopting negative interest rate measures.
In recent years, the U.S. government has been pursuing a policy of raising interest rates, which is another fatal blow to the yen's exchange rate.
While the value of the U.S. dollar is rising, the value of the Japanese currency is decreasing.
Even so, the Bank of Japan did not adjust its interest rate policy because it knew that if it raised interest rates, Japan's economic growth would suffer.
However, some time ago, the Bank of Japan broke the interest rate policy that had been maintained for more than 10 years and raised the yen interest rate by 0%~0.1%, thus ending the long-term state of zero negative interest rates.
Under the influence of the Fed's interest rate hike policy, the currencies of other countries should also raise interest rates, which is very beneficial to the value of the currency.
Due to the global hegemony of the dollar, the Fed often uses the dollar to harvest the wealth of other countries. Since 2022, the Federal Reserve has raised interest rates several times, which has also increased the value of the dollar.
Against this backdrop, the yen, the renminbi, and the euro have depreciated.
It stands to reason that after the Bank of Japan raises interest rates, some assets will flow into Japan.
However, the exchange rate of the yen is the lowest in more than 30 years.
In response to this situation, the head of the Bank of Japan pointed out that the most important thing for the Bank of Japan to do now is to continue to steadily implement an ultra-loose monetary policy. In the case of an adjustment in the interest rate of the yen, the phenomenon of foreign exchange speculation will increase.
However, the yen has fallen in the face of a further increase in the value of the dollar, while the currencies of other Asian countries are also facing a decline.
A quiet financial storm is sweeping across Asian countries. Some analysts believe that the Asian financial turmoil launched by the United States was originally aimed at China, but the financial turmoil did not develop as expected by the US government.
Especially in the face of the weakening influence of the United States on China's economy, it is impossible to shake the value of the Chinese currency.
When the United States failed to reap China's economic wealth, it randomly shifted the harvest to Asian countries such as Japan and South Korea, and helped the United States improve the current economic crisis by weakening the economies of Asian countries such as Japan and South Korea.
Since the US government has repeatedly raised interest rates, the value of the dollar has also risen significantly compared to before.
That's when a large part of the money went to the United States. In this way, the United States wants to drain the liquidity of the Chinese market, causing a decline in Chinese assets, so as to affect the development of China's economy.
The U.S. government's goal of suppressing China has not been achieved, and the mainland economy has remained relatively resilient and has not been turbulent due to the withdrawal of a large amount of capital.
Although Japan has been an ally of the United States over the past many years of development, it has played a very active role in the U.S. strategy against China.
The U.S. government is still going to Japan at a critical time, and the Japanese stock market is also going through a major ordeal when the value of the yen is depreciating sharply.
In the face of the volatility in the financial market, some Japanese officials have pleaded with the United States, hoping that the United States will help Japan solve the current problem of the decline in the yen exchange rate.
These actions of Japanese officials have not actually had any effect, and the dollar is still relatively strong.
At present, Japan is facing a huge economic crisis, especially in the case of Japan's continuous quarterly deficit and foreign exchange depreciation, which is a fatal blow to the economic development of the whole country, coupled with the relatively large scale of Japanese government bonds, the Japanese government does not dare to raise interest rates easily, otherwise it will further hit the Japanese economy.
If the U.S. continues to keep interest rates high and Japan fails to adjust interest rates, it will be an even bigger blow to the yen.
Some European countries have followed the US policy and proposed interest rate hikes, effectively avoiding being harvested by the US economy.
The United States wants to harvest the economies of China and Russia, but in the process of implementation, it still cannot shake the economies of China and Russia.
Only countries such as Japan, which implements loose monetary policies, can allow the United States to carry out economic harvesting, and if it continues at this rate, there is a high risk that Japan's economy will collapse.
What do you think about the Japanese economy?