Hodge, an American based in Japan, said " “inflection points happen over a period of months or even years. We believe we’re at one now.” He elaborated: "Americans rely on foreigners to buy our bonds. We require foreign capital to finance our deficit. We have to offer those financial assets at a price that will be attractive to foreign buyers. There's two ways to do that: raise interest rates and cheapen the currency so it's less expensive for them to buy them. We think that's what's going to happen."

Hodge defined two major forces that characterised the inflection period :

• the goal to achieve price stability ...