Arthur Hayes Warns Secret Dollar Printing Could Drive Stock Surge Amid Yen Turmoil

• Arthur Hayes, a seasoned name in the crypto world, has suggested that U.S. Democrats might secretly print dollars to boost stock market rallies ahead of the elections.
• In his recent article, Hayes emphasized that Kamala Harris’s presidential campaign could receive significant support if the stock market performs well.
• However, last week’s turmoil in the Japanese Yen carry trade resulted in a $6.4 trillion loss in global stock markets, with the S&P 500 experiencing its worst trading day since 2022.

Arthur Hayes predicts hidden financial maneuvers by the U.S. to bolster stock markets before elections, aiming for economic revival and political gain.

U.S. Democrats’ Potential Strategy to Influence Stock Markets

Arthur Hayes speculates that U.S. Democrats might resort to secretly printing dollars to stimulate stock market growth before the elections. According to Hayes, this strategy could potentially strengthen Kamala Harris’s presidential campaign, provided the stock market shows positive performance.

Recent Market Volatility and Its Impact

Last week’s volatility in the Japanese Yen carry trade led to a significant impact on global markets. The demand for the Yen increased, causing its value to rise and prompting investors to close positions to preserve profits. This chain reaction resulted in panic selling, driving a $6.4 trillion reduction in global stock market value, alongside the S&P 500 marking its worst day since 2022.

Hayes’s Speculation on Secret Financial Moves

Hayes further suggests that in response to the market downturn, Vice President Kamala Harris might press Secretary of the Treasury Janet Yellen to orchestrate a covert operation to stabilize Japanese investors. This potential operation could involve the Federal Reserve lending dollars to the Bank of Japan (BOJ) in exchange for Japanese Yen.

Possible Economic Ramifications

According to Hayes, such a maneuver would enable the BOJ to maintain control over the Yen’s value while the influx of newly minted dollars would fuel rallies in both the stock and bond markets in the U.S. Hayes believes this could enhance Harris’s stance in the upcoming elections:

“The most significant aspect is that by the Fed printing dollars, the prices of U.S. stocks and bonds will rise. Additionally, Japanese banks will be able to issue unlimited amounts of Yen-denominated loans with new JGB collateral, thereby rejuvenating the economy in both the U.S. and Japan,” Hayes noted.

Conclusion

In summary, Arthur Hayes’s insights highlight potential surreptitious efforts by U.S. Democrats to manipulate financial markets as a strategy to gain political mileage before the elections. This proposed approach underscores the elaborate interplay between global financial markets and political agendas, offering a thought-provoking perspective on the possible intersection of economic policy and electoral strategies.