Part 13/16:
Interventions—selling treasuries or currency market operations—are tools Japan deploy to manage this devaluation, but structural issues remain, and the Yen's decline could accelerate if policies stay accommodative.
The Potential for Market Episodes and Volatility
Recent phenomena—such as retail-driven short squeezes in stocks like GameStop and AMC—are modern expressions of animal spirits and protest. These episodes highlight the fragility in markets driven by speculative fervor rather than fundamentals.
Investors, both retail and institutional, crowd into commodities, gold, cryptocurrencies, and stocks as safe havens or protest assets, reflecting a loss of confidence in traditional monetary and fiscal stability mechanisms.