Sr. Pessimist

Would a US Recession Negatively Impact Japan?

JPY was low interest for a while. It was .25% at Japan's central bank. Then they raised it to .5%, and the stock market isn't ballooning as much as it used to. (Come to think of it, it didn't take long after corruption-embattled Wolfowitz was out of the World Bank for the stock market to stop climbing.) Anyway, I read somewhere the US Dollar was backed by $2T-worth in Japanese Yen. I think a lot of currency trading allowed a lot of extra stock market purchases by hedge funds. So if the US sees both a weak dollar and a weak economy underlying, the $2T Japanese Yen bet on America recedes, too. That's not to mention other connections between the US and Japan.

Bank of Japan's Policies are the Problem, Not the Solution

Government dummies normally don't know what they're doing. They normally don't know, accept, or foresee being held accountable for the consequences of their actions.