Lena Petrova explains how decades of ultra-low (even negative) Japanese interest rates fueled a massive global liquidity machine through the yen carry trade and foreign asset purchases. With Japan now facing inflation, a weak yen, and rising wages, the Bank of Japan is poised to hike rates further — potentially to levels not seen since the mid-1990s. This shift is prompting Japanese investors and institutions to repatriate trillions in overseas holdings, especially US Treasuries. The video warns that a rapid unwind of the yen carry trade and large-scale asset repatriation could spike global yields, pressure stock markets, tighten liquidity, and create serious turbulence for the heavily indebted US economy.
