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Recently, the international financial market is experiencing a major storm. In this financial turmoil, the yen exchange rate has been declining, which has also caused strong discussions in the international financial market.
What caused the yen exchange rate to plummet?
Faced with this problem, some analysts believe that the main reason for the decline in the yen exchange rate is the strengthening of the dollar index.
The U.S. dollar has a greater global influence than the yen.
At present, it ranks first in the proportion of payments in global trade transactions, and it is also the main reserve currency of the world's countries.
In the case of the rising value of the US dollar, it often leads to major events in the global economy, further increasing the instability and uncertainty in the global economic sector.
In this increasingly uncertain situation, many investors tend to move their assets to the United States in order to further reduce the risk of their capital.
As a result, the affected countries will experience currency depreciation. As a result, the various measures taken by the Fed tend to have a significant impact on international financial markets.
The rise in the dollar index was further exacerbated by the monetary policy adopted by the Federal Reserve, which, combined with the fact that the economic performance of the United States did not allow the dollar to fall.
Against this backdrop, the exchange ratio between the yen and the dollar has been widened. In particular, the Japanese government has maintained an accommodative monetary policy even though it has not taken any measures, which has also hit the yen.
As a result, the yen depreciated sharply, and the exchange ratio with the dollar reached 160:1 at one point.
In addition to the strengthening of the dollar index, the yen exchange rate collapsed. It is very likely that they are facing a conspiracy to be shorted.
While the economic situation in the United States is still very severe, the Federal Reserve uses the hegemony of the dollar in its hands to try to set off a financial storm in the international community and harvest the wealth of other countries.
Unlike in the past, the Fed's main target this time is Asia.
However, against the background of the relatively strong economic development of the mainland and the fact that it has taken a number of preventive measures, it is very difficult for the United States to harvest China's wealth.
When many bears tried to short the Chinese economy without success, they turned their attention to Japan.
Therefore, analysts believe that it is very likely that the US government and those international financial investors jointly launched this storm.
In order to successfully harvest Japan's wealth, the bears have made large-scale short-selling of Japan, further weakening Japan's economic development, and at the same time acting as a deterrent to China.
From this point of view, this financial turmoil is actually an economic and trade war jointly planned by those international bears and the United States.
In addition to the analysis, some people believe that the financial crisis is likely to be another encirclement of China by the United States, Japan and other countries, in an attempt to suppress China's development and rise in the economic field.
In recent years, the United States has been taking various measures to suppress China's economic development.
Because the United States has always occupied economic hegemony in the past and can be called the boss of the global economy.
In recent years, the rapid development and rise of China's economy has put the United States under pressure, and has constantly imagined China as a competitor to destroy American hegemony. Japan foolishly cooperated with the United States and underestimated the strength of the mainland, and the United States foolishly thought that it could harvest the mainland frantically, but in the end the calculation finally failed.
In order to avoid this day, the US government first launched an economic and trade war against China, and then carried out comprehensive suppression of China in the economic and other fields.
However, the various sanctions imposed by the US government in recent years have not had a significant impact on China, and they still cannot stop China's development.
As a result, the United States has constantly set up obstacles around China, trying to unite many allies to comprehensively suppress the mainland in the economic field.
However, the most common method of the United States is to manipulate the market and use the hegemony of the dollar to influence the exchange rates of other countries. And this time, it is very likely that the U.S. government and Japan have set a plan in advance to harvest China's economy.
Perhaps this is the reason why the Japanese government has not made any counterattack despite the sharp decline in the yen exchange rate.
However, it can also be seen from the current financial turmoil that Japan has no way to limit the occurrence of this phenomenon in the face of a sharp currency depreciation.
This also shows that Japan is no longer able to fully realize its independence, and after the financial harvest of the United States, Japan's economy has been almost wiped out. The Japanese government, because it has lost its sovereignty, has become a complete dependency of the dollar, helping to harvest the dollar in such a situation.
The reason why Japan is facing these difficulties is that in addition to the continuous depreciation of the value of its currency, Japan is also facing relatively great pressure on its national debt.
Since Japan has issued a large number of government bonds in the past, which is already twice the size of Japan's GDP figures, it is facing a situation where the economy has been completely destroyed in the face of this economic crisis.
What are your thoughts on the collapse of the yen? Welcome to discuss in the comment area!