The BOJ decision to increase interest rate and rising yen has hammered the carry trade. And it is no longer wise to hold on to carry trade. Thus hedge funds and other money funds are disgorging their carry holdings to stave off losses. The two events are causing the carry trade to be unprofitable.
Is this revenge for the nuke bombing of its two cities vs USA and the world (no basis)
We just wonder how this event would:
1. Affect Japanese yen loans to the Philippines;
2. Budgeted/approved yen loans to Philippine projects
There is greater uncertainty with USA because of huge debt. Its a $36 trillion now. And USA adds $1 trillion every 100 days. The idea now is not to pay the debt and just keep on printing more money. But all will come crashing soon.
Questions:
1. How is this crisis going to affect our relatives living in USA?
2. How is this going to affect local banks and businesses.?
All ready local stock markets are down? How about local banks? Will this crisis affect remittances and our OFWs
