20 12, 165438+ 10, then Japanese prime minister Noda Yoshihiko was "forced into the palace" by the opposition party. In mid-June, the cabinet dissolved the parliament and announced an early general election. At that time, Abe, as the president of the Liberal Democratic Party, Japan's largest opposition party, was thought to win the election, and Abe has always tended to put pressure on the Bank of Japan to introduce a loose monetary policy to combat deflation that lasted for 20 years.

At this time, some large American hedge funds, including Soros Fund Management Company, have seen that the Bank of Japan will introduce monetary stimulus measures after Abe takes office, which will lead to the depreciation of the yen, and they have begun to short the yen.

Soon, investment banks and private investors began to sell the yen on a large scale, and the exchange rate of the yen against major currencies in the world fell rapidly. The short-selling behavior of hedge funds aggravated the decline of the yen, and the exchange rate of the yen against the US dollar plummeted by nearly 1 1.02 within three months from mid-1965.

Soros Fund Management Company, which is in charge of assets of $24 billion, earned $654.38 billion by shorting the yen. The fund company's return on investment in 2065.438+02 was about 654.38+00%, and the return rate since 2065.438+03 was 5%. In addition, nearly 10 of Wall Street investment funds also earned a lot of money.