Yep. The yen will pretty much collapse. That will coincide with the sudden return of a highly non-linear phenomenon known as general price inflation.<p>It&#x27;s not like it hasn&#x27;t happened before anywhere in the world. The exceptional thing is the enormous amount of trust that developed markets have in the central bank&#x27;s technocratic policies. This trust was built up during 70 years of relatively high stability (and growing complexity and obfuscation of the monetary and financial system).<p>For now the BoJ still has room to abuse this trust and make a mockery of every form of market-based risk analysis, valuation and price discovery. But at some random point of time, the trust will just break. Even in Japan no amount of measures will stop the market&#x27;s instinct for self-preservation as yen holders flee to other assets.<p>Japan is ahead of the rest of the developed world in this. The Japanese experiment will put pressure on currencies and interest rates in all other countries who are facing a variation of the same problem.<p>Most important: all this will happen in a country (or world) full of pensioners. Shikata ga nai.