Ok, so I read it 3 times and then asked GPT to ELI5, maybe someone will find it useful like I did. Imagine Japan is like a big piggy bank, and inside it, there are special papers called bonds. The people who take care of the piggy bank, called the Finance Ministry, are thinking about making these special papers more valuable by saying they are worth more interest. It's like saying, "If you give us your money, we'll give you a little extra back later."
But, this hasn't happened for a very long time, like 17 years! This makes other places in the world worried, especially a group of countries that use a special money called the Euro. They're afraid that if Japan makes their piggy bank more attractive, people might take their money out of the Euro piggy bank and put it in the Japanese one.
This could make the Euro piggy bank not happy and maybe even a little sick. So, the people who take care of the Euro piggy bank, called the European Central Bank (ECB), are talking a lot about the possibility of making their piggy bank more attractive too, just to keep people from moving their money away.
It's like a big game of making piggy banks look good so that everyone keeps their money inside, and if one piggy bank changes its rules, the others get a bit nervous and might change theirs too!
Sounds good and correct, thanks. And now think of what happens to the Eurozone's members that could loose control over their budgets in case of capital flight which leads to yield spikes. Their social systems (biggest Ponzis ever) would collapse OR: The ECB continues buying literally anything on the bond market and hyperinflates the Euro. They are trapped!!
reply
Good there is a thing called bitcoin:)
reply
Tell me more
reply