Japan's economic predicament is accelerating. Since the new Prime Minister took office, energy subsidies and cash distributions have been implemented simultaneously, but behind all this is only one principle: "Debt expansion, central bank bailout."



Numbers tell the story. Japan's government debt-to-GDP ratio has soared to 240%, unmatched worldwide. Bond yields continue to rise, investor concerns about the Japanese economy are increasing, yet the yen continues to decline under this pressure.

The most ironic part is the Bank of Japan's response—printing money wildly while directly entering the market to buy bonds, attempting to artificially suppress yields through administrative measures. The result? The yen's depreciation is widening, the USD/JPY exchange rate approaching the 2024 historic lows, alongside the Turkish lira, making them the fastest depreciating currencies globally.

This creates a vicious cycle: more fiscal stimulus → debt accumulation → central bank releasing more liquidity → yen continues to depreciate → inflationary pressures rise → ordinary people's purchasing power declines. The entire logical chain has formed a closed loop, making it difficult to break.

When a country falls into such a dilemma, ordinary people face two choices. The first is passive acceptance: watching their savings shrink in inflation. The second is proactive action: seeking relatively stable assets as safe havens to hedge against the risk of single currency depreciation.

Against this backdrop, many investors are beginning to focus on on-chain tools that are relatively stable and backed by real assets to hedge against the devaluation risk of their domestic currency. This reflects a shift of an era: when traditional financial systems fail, people start seeking technological solutions.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 8
  • Repost
  • Share
Comment
0/400
GateUser-dcf816a6vip
· 17h ago
Bull run 🐂
View OriginalReply0
ShibaOnTheRunvip
· 17h ago
Japan's latest move is truly incredible. The printing press is running at full speed, and the yen is directly heading to hell alongside the Turkish lira. Ordinary people's savings are just paper now. The central bank is frantically buying bonds, isn't this blatant financial suicide... The vicious cycle has already started, and no one can save it. It seems I need to run early. On-chain assets are really attractive, much better than watching fiat currency depreciate. This is the eve of the collapse of traditional finance. It was long overdue to embrace technological solutions. A debt ratio of 240% is not far from the end of the world. The Bank of Japan's move is brilliant—jumping into the pit voluntarily. With the yen crashing so violently, I want to ask if anyone still dares to buy the dip.
View OriginalReply0
RamenDeFiSurvivorvip
· 17h ago
Japan's latest move is truly brilliant: printing money → devaluation → inflation → can't afford to buy food, a perfect closed loop. Japan has now completely exposed itself; the central bank's frantic money printing has instead accelerated the death of the yen. A developed country now ranks alongside Turkey's lira at the bottom. A debt ratio of 240%? For ordinary people, that would mean bankruptcy, but the central bank can just keep taking on the debt. This move is really clever. Instead of waiting for savings to be eroded by inflation, it's better to move assets onto the chain early, at least they won't keep depreciating. The Japanese people are really suffering now; wages can't keep up with inflation, and their purchasing power is shrinking daily. This is why more and more people are starting to focus on on-chain assets with real backing. Traditional finance just can't keep up anymore. The central bank says it wants to control inflation, but at the same time, it’s flooding the market with liquidity. Isn't that contradictory? Looking at Japan like this only strengthens my resolve to diversify risk. Relying on a single currency is truly unreliable. Printing money → devaluation → inflation—Japan probably can't break free from this vicious cycle.
View OriginalReply0
ReverseTradingGuruvip
· 17h ago
240% debt ratio? Japan is playing with fire. The central bank's printing press is about to smoke. The yen is falling alongside the Turkish lira. Laugh out loud. These two currencies are really in a tough spot. Relying on fiscal subsidies to save the economy, in other words, drinking poison to quench thirst. Eventually, the bills will come due. What are ordinary Japanese people thinking now? Shrinking savings or quickly switching assets? There is no third option. I see through this logic: debt → devaluation → inflation → continued money printing, going in circles. In an era of weak currencies, who still really buys the dip? You need to find some hard assets to feel safe.
View OriginalReply0
TokenDustCollectorvip
· 17h ago
Japan's approach is truly brilliant—printing money to rescue the economy, only to end up saving itself. I really don't know who wins between the yen and the Turkish lira... --- A 240% debt ratio? That number makes my scalp tingle. What can the central bank print out of this? --- Even the powerhouse countries can't hold up anymore. It seems we need to hold some stable assets; otherwise, savings are just playing a devaluation game. --- Once this logical chain closes, it's dead: fiscal stimulus → debt → money printing → devaluation, cycle after cycle... --- The key is that ordinary people are too helpless. Either watch their wealth shrink or be forced to find a way out—there's no third option. --- The yen's recent devaluation is outrageous. Investors are probably thinking about how to hedge against risk now. --- The central bank's frantic market interventions to suppress yields? Isn't that just drinking poison to quench thirst? It will backfire sooner or later. --- What does the continuous rise in bond yields indicate? It shows no one is optimistic—it's a bearish outlook on Japan.
View OriginalReply0
GateUser-ccc36bc5vip
· 18h ago
Japan's latest move is truly brilliant—what can endless money printing really solve? Debt piling up and the central bank taking the blame—ultimately, it's the common people who foot the bill. A debt ratio of 240%... no one can save it; they can only find their own way out. The yen and the lira are falling together—it's a perfect irony. No matter how the central bank tinkers, it can only accelerate the collapse. It seems necessary to shift to stable assets early to protect oneself; the risk of devaluing a single currency is too great. This is the "dead end" in economics—fiscal stimulus, inflation, devaluation... a recursive cycle that seems impossible to break. If Japan continues like this, more and more people will turn to on-chain assets for risk hedging. Traditional finance needs to wake up. Debt can never be fully paid off; no matter how fast the printing presses run, the fundamental problem won't change. It's a bit hopeless.
View OriginalReply0
GasGuzzlervip
· 18h ago
Whoa, 240%! The Bank of Japan is playing with fire—printing money is about to smoke out. --- The yen is just along for the ride with the lira—can't even smile about this. --- So now holding stablecoins is the way to go? Traditional finance is really doomed. --- Debt - Printing money - Depreciation, who can save this vicious cycle? Unless there's a revolution. --- Japanese savings are just slowly evaporating—brothers, this is too tragic. --- This logical chain has closed the loop; I just want to know when the breakthrough will happen. --- No wonder more and more people are looking for safe havens on the chain—who still trusts paper money? --- A debt ratio of 240%? This is no longer an economic issue; it's a matter of national destiny.
View OriginalReply0
FloorSweepervip
· 18h ago
jpy getting absolutely wrecked while boj keeps printing like there's no tomorrow... classic capitulation setup tbh. most retail still holding bags tho, paper hands haven't even started selling yet ngl
Reply0
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)