by Martin Armstrong
The formation of the G-5 in 1985 and the talk that they "wanted" to see the dollar decline by 40%, began a capital withdrawal from the United States back to the second largest economy, Japan. As that capital contracted, both the yen rose in value globally as did its real estate and share prices. This attracted capital worldwide causing a capital concentration in Japan forming the Bubble top.
The formation of the G-5 in 1985 and the talk that they "wanted" to see the dollar decline by 40%, began a capital withdrawal from the United States back to the second largest economy, Japan. As that capital contracted, both the yen rose in value globally as did its real estate and share prices. This attracted capital worldwide causing a capital concentration in Japan forming the Bubble top.
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