Get ready for an electrifying voyage into the world of finance with Weston Nakamura. Weston is a seasoned finance professional who relocated to Tokyo at the start of Abenomics and has since navigated his career from derivatives futures options trading to a pivotal role at Blockworks Macro. He brings a unique perspective on the dynamics of central bank policies, Japan's yield curve control, and the influence of Asian markets on the global financial framework. If you've ever been curious about the blind spots in the US coverage of Asian markets, this is the episode for you.
We delve into the history of Japan's economy and the birth and impact of the carry trade. From the immense asset bubble in the late 80s to the deflationary mindset that ensued, Nakamura provides an insightful look at financial transitions. We also explore the Bank of Japan's zero and negative interest rate environment, which gave birth to the carry trade, and consider the potential global market implications of a rising yen against speculative short positions.
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The episode winds down with an examination of Japan's current debt crisis and possible resolutions. Nakamura offers thought-provoking insights on the implications of the Bank of Japan's decision to lift its yield perp control and the potential impact of Japan repatriating its trillions of dollars back home. We also discuss the Bank of Japan's ETF holdings, wealth inequality, and the potential influence on the Japanese equity market. Get ready to broaden your understanding of global financial dynamics in a conversation packed with captivating discussions and deep insights.
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Exploring Asian Markets and Central Bank Policies with Weston Nakamura