What Happens When Yen Collapses? Economist Steve Hanke On Next Currency Crisis

Summary

Steve Hanke discusses the recent U.S.-BOJ yen intervention, arguing it only produced a dead-cat bounce and that yen weakness should continue because money-supply and fiscal fundamentals have not changed. He expects U.S. 30-year Treasury yields can rise at least 50 basis points, reiterates a secular gold bull target of $6,000, and views higher long yields as a stock-market headwind. The conversation also reviews the 1997 Asian Financial Crisis and Hanke's currency board work, contrasting Hong Kong's resilient currency board with the IMF-led failures in Indonesia.

• The interview covers the July 31 U.S.-BOJ yen intervention and why Hanke views it as ineffective.
• Hanke argues the yen's weakening is driven by slow Japanese money supply growth and fiscal stress.
• He expects the 30-year U.S. Treasury yield can rise at least 50 basis points on war, inflation, and deficit factors.
• Hanke reiterates a secular gold bull market and a $6,000 per ounce target.
• The conversation revisits the 1997 Asian Financial Crisis, Thailand, Indonesia, IMF involvement, and Hanke's currency board work.
• Hanke explains why Hong Kong's currency board survived and says no currency board has failed.