Discover and read the best of Twitter Threads about #hkma
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The yen is the proverbial canary in the coal mine for Asian currencies. BOJ Governor Kuroda has engaged in several “unlimited” and very public bond buying operations. Their Faustian bargain on rates has two major problems that act simultaneously against Japan: 1. Every bond 1/6 
purchased by the BOJ injects that many more Yen into the system. 2. Rates differentials between other developed economies (primarily the U.S.) causes Mrs. Watanabe to immediately take those Yen and invest abroad at much higher rates (+250 bps now).The third rail and lingering 2/6
Explosive problem is confidence in the BOJ eroding daily. These ‘disorderly’ moves in the Yen break confidence in control. Market forces can turn into a panic 😱 once participants realize the yen is completely unhinged (happening now). Once lack of confidence on 3/6
It's rumored that the US sanctions against Ant Group, Alibaba, and TenCent were derailed by a single phone call from Mike Evans (Alibaba president and Goldman Sachs alum) to a senior US Govt official. Ant Group could have agreed to share transaction data and account details 1/4
with US intelligence. Maybe xi decided to go with China's own digital currency? It's possible xi wanted to stop Jack Ma's bombastic public comments about the Chinese banks? Could this be a Bo Xilai moment for Mr. Ma? It wasn't long ago when Dalian Wanda, HNA, and Anbang 2/4
were high-flying leaders in their industries. All investors in Chinese stocks need to know is that the CCP decides who wins and who loses...who goes to jail and who gets pushed off 2-ft walls in France. If anyone actually read through the Ant listing prospectus, 3/4
