AUG 30. Chaotic month of August ended.. what’d happen if Japan hike the rate in September?

The chaotic month of August market ended like this. On July 31st, in US local time, the Bank of Japan raised their rates.

Then, stock markets around the world plummeted, and with the US unemployment rate reaching 4.3% in July, money flowed out of the markets like an ebb tide.

Stories of despair, such as the Black Monday of 1987 and the financial crisis of 2008, filled the first week of August. Then, on August 7th, the Bank of Japan’s Deputy chairman made a declaration to the world.

“We’re not going to raise the rate easily” After Japan’s declaration, the global market stabilized as if it were a lie.

It really wonder how much money people around the world have borrowed from Japan… But since Japan itself has been acting as an overdraft account for people around the world…

The problem is that on August 23rd, last Friday, Bank of Japan Governor Ueda appeared on the Japanese parliament and made an important statement. “ Depending on the situation going forward, there will be no choice but to raise interest rates…” And this week, Japan’s July inflation rate will be announced at 2.4%. Their unemployment rate has also soared to 2.7%.

If it goes like this, Japan will have no choice but to pull out the yen rate hike card again. Japan’s limitations in defending the yen with money have already been exposed to the market.

The possibility of a major crisis in September is not without reason.

The U.S. stock market rose sharply today.

DJ Index was up by 0.6%, S&P 500 Index rose 1.0%, and NASDAQ Index was up 1.1%. Despite the market chaos caused by Japan’s interest rate hike in early August, US stock market held up well.

As of the August closing price, DJ Index was up 1.8% from the previous month, S&P 500 Index was up 2.3%, and…