Japan's financial century: a global phenomenon

When Clyde Prestowitz imagined a Japanese century emerging from global upheaval in 2015, conflict engulfed the Middle East, yet signs of revolutionary change were scarce. But in one crucial respect, this already is a Japanese century - thanks to the yen's role as the world's cheapest and most reliable funding currency.

Japan's boj fuels global carry trade

The Bank of Japan's loose monetary policy has turned the yen into a speculative plaything. By suppressing yields on public debt to keep Japan's domestic Economy afloat, the BoJ has created a publicly-subsidized pipeline for bankers. They can borrow cheaply in yen and invest in higher-return assets, such as US equities. The