JAPAN FACES ECONOMIC CRISIS AS YEN CARRY TRADE COLLAPSE LOOMS.

Japan’s economy faces a crisis due to the potential collapse of its $20 trillion yen carry trade amid rising inflation.

The Bank of Japan (BoJ) is caught between tightening monetary policies, risking a collapse of the carry trade, or maintaining low rates, which threatens financial stability.

This situation affects wealth distribution, impacting older, wealthier citizens if policies tighten and younger households if rates remain low.

The BoJ’s decision will shape Japan’s economic future, risking financial instability and yen devaluation.

Source: ZeroHedge