Jim Rickards

speaker

2,787 appearances 21 recordings 1 series first heard Aug 2025 last heard 6d ago

Jim Rickards’s voice in public audio — every appearance, attributed to the second.

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recordings per month · last 12 months

Recordings per month over the last 12 months — 20 in all, peaking in Aug 2026 with 6.

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Now, that's the yen carry trade.

And it's all over the world, every major currency, every transaction you can think of.

It's funding China.

It's basically global leverage is based on what I just described.

Now, sounds good.

What can go wrong?

What can go wrong quickly, and it's happening, is that Japanese interest rates start to go up.

When Japanese interest rates go up, then my profit disappears.

What do I do as an investor in that situation?

I unwind the carry trade.

Basically, I take dollars, I swap them into yen, I pay back my yen loan, get out of that.

Now, one of several things happens, I'm either borrowing in dollars, that may be okay because

because the spread is going away, that the profit of borrowing yen has gone away, so now I'm borrowing dollars.

What if I can't borrow in dollars?

What if the US banks are saying, sorry, no soup for you?

Well, now what do I do?

Well, I have to sell assets.

Either you're basically putting pressure on the yen, because they want to pay back the yen, or you're deleveraging the whole system.

You're selling assets.

That takes the stock market down.

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