[00:02] one country.  Japan kept its central bank rates at zero.  Any investor could borrow yen for almost free, and at some points even the Central Bank paid for this yen to be borrowed.  The investor could then exchange the
[00:15] yen for dollars and invest in assets that yielded much more.  This is called carry trade.  According to the Bank for International Settlements, International Settlements, about 40 trillion yen are circulating in direct loans alone
[00:29] .  And through currency swaps, another 14 trillion dollars.  In June 2026, the Bank of Japan raised the rate to 1% for the first time since Japan raised the rate to 1% for the first time since
[00:44] seams.  The yen has fallen to its lowest level in 40 years.  Now it costs more than 162 to the dollar.  And here's the paradox.  The rate has been raised, but the currency is still falling because investors continue to borrow EU and then immediately sell it while the difference with the
[00:59] Fed rate remains huge.  But sooner or later it will start to close.  Then investors will have to buy back the more expensive shares in order to repay their debts.  And to do this, we will have to sell off assets all over the world.  It's just a
[01:14] time bomb, and sooner or later it will definitely explode.  It was this it will definitely explode.  It was this mechanism that, in August 2024, in one day caused the Japanese index to collapse more than Black Monday in 1987.
[01:29] Black Monday in 1987. and weak reserves, such as Türkiye, Argentina and Egypt, would suffer the most from a repeat of this scenario.  By the way, this also applies to Russia.  In times of such global panic, investors typically sell off
[01:44] risky assets around the world, including oil.  The ruble exchange rate and the Russian budget directly depend on the price of oil.   The cheap money that has kept the world going for 40 years is running out, and no one knows exactly what will
[01:57] happen when it runs out completely.  Subscribe.