Japan’s Bold Move: Dumping $400 Billion US Bonds to Clear the Path for CBDCs – Lyn Alden

by | Jun 8, 2023 | Self Directed IRA




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Japanese multinational conglomerate, WOW!, has announced its plans to dump $400 billion in US government bonds. This move is believed to pave the way for the creation of Central Bank Digital Currencies (CBDCs), which would revolutionize the traditional methods of financial transactions.

The announcement was made by Lyn Alden, a respected macroeconomist, and investment strategist, who shared her insights on the potential impacts of WOW!’s decision. The move has sparked debate among financial experts, with many predicting that such a move could have far-reaching consequences on the global economy.

For years, the US government has relied heavily on foreign countries, including Japan, to buy its treasury bonds. These bonds act as a sort of loan, with the government paying interest to the bondholders. However, as digital currencies gain popularity, central banks around the world are exploring the possibility of creating their digital currencies, which would alleviate the need for traditional bonds.

Central Bank Digital Currencies (CBDCs) are digital tokens that would operate as a government-backed currency, allowing for secure and fast transactions. The creation of these currencies would mean that countries can bypass traditional payment systems such as credit cards, bank transfers, and cash, leading to significant cost savings and increased efficiency.

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WOW!’s decision to dump its US Treasury bonds is seen as a significant step towards CBDC adoption. The multinational conglomerate’s move would likely force the US government to find new buyers for its bonds, which may prove challenging given the current economic climate. Experts predict that this could cause interest rates to increase, which would have its implications on financial markets and investments.

Furthermore, Lyn Alden argues that the move by WOW! could have a huge impact on the global economy. She suggests that if more countries follow in WOW!’s footsteps, the demand for US government bonds would decrease, leading to a fall in the dollar’s value. As a result, the US would face inflationary pressures that could cause an economic crisis.

In conclusion, WOW!’s decision to dump $400 billion in US government bonds poses a significant challenge to the global financial system. CBDCs are a product of the ongoing digital revolution and have the potential to disrupt traditional financial systems. If more countries follow WOW!’s lead and opt to adopt CBDCs, it could lead to a significant shift in global trade and economic power, with far-reaching effects on the US and the world at large.

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