6/24 Strategy as shown in the chart

Yesterday afternoon at 2 PM, global stock markets collectively plummeted, South Korea's KOSPI plunged 10% triggering a circuit breaker, pre-market Nasdaq fell 2%, many tech stocks dropped 10%, and the decline may just be beginning, increasing the risk of a financial crisis.

The Japanese yen against the US dollar fell to 161.9, hitting a 30-year low. If it breaks 162, it could rapidly depreciate to 170. Japan can only aggressively raise interest rates, which would cause leveraged funds borrowing in yen to buy US stocks to be liquidated en masse, triggering a stock market stampede. Coupled with the US's high debt and asset bubbles, multiple risks are stacking up.

Raising interest rates will directly break the yen carry trade that has lasted for years: previously, massive funds borrowed low-interest yen to buy US stocks. After the rate hikes, financing costs soar, and institutions can only sell stocks collectively to close positions and repay debts, causing a chain reaction of selling that will continue to pressure global stock markets.

For a long time, the yen carry trade investing in US stocks has been a core part of global liquidity. Japan's aggressive rate hikes will significantly increase the cost of leveraged funds, triggering concentrated margin calls and forced sales, leading to a chain reaction of declines in global stock markets. In addition, the US's high sovereign debt and asset market valuation bubbles further amplify medium- and long-term downside risks. #BTC #eth