Peter Schiff warns of “slow-motion train wreckage” of financial disaster, this is nobody’s radar

On Tuesday, Japanese government bond yields reached a 15-year high, climbing to 1.40% as strong economic growth data intensified expectations for further tightening of currencies.

what happened: renowned economist and gold advocate Peter Schiff Warn of potential market damage and point out that X said: “The yield on 10-year JGB is 1.38%, the new 15-year high. This slow-motion train wreck doesn’t seem to be on anyone’s radar…my guess It’s 2% that solves the problem.”

Japan’s economy grew 0.7% in the fourth quarter, surpassing the 0.3% forecast and accelerating from 0.4% in the previous quarter. Annualized, GDP grew by 2.8%, based on a 1.7% increase in the third quarter.

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Why it matters: The surge in yields has had an impact on U.S. investors, as Japan’s transfer from hyperfloating monetary policy could trigger a reallocation of global capital flows. In March, BoJ raised the benchmark interest rate to 0-0.1%, ending a 17-year negative interest rate.

This policy change has led to higher yields in Japan’s bonds and stronger yen, prompting Japanese investors to repatriate capital from foreign markets.

Economic momentum has sparked a boom in Japan’s corporate bond market, and companies are eager to get funding before they expect a rate hike. Japanese companies issued record 14.7 trillion yen (US$96.8 billion) of local currency bonds this fiscal year. Bloomberg data.