Japan’s economy has been struggling for years due to its heavy debt burden and low interest rates. As inflation becomes more pressing, the country is forced to increase borrowing costs, marking the end of the era of free money. The Japanese yen is weakening as a result, which will have serious economic and political consequences. It is likely that Japan will resort to devaluing its currency and implementing tariffs in an effort to stabilize its economy.
This trend is not unique to Japan, as all currencies are currently experiencing instability. The world can expect to hear a lot about tariffs, devaluations, and trade restrictions in the coming months. This situation bears resemblance to the beggar-thy-neighbor actions of the 1930s that ultimately led to World War II. As such, it is important for investors to keep a close eye on global currency markets in order to stay ahead of potential trouble.
