The US Treasury Department is joining forces with Japan to confront investors betting against the yen: but who really holds the stronger bargaining chips — Washington or Tokyo? At the same time, it seems that the dollar system under Trump has become toxic and threatens the US’s closest and most stable ally, having been driven …
Tag: Japan
US foreign exchange intervention plan to support Yen
The picture in Japan’s debt markets is beginning to resemble a slow but persistent phase shift into a system that for decades operated with artificial stability. From the savior of the monetary system, during the Nixon shock with the largest monetary deal in history, it is now expected to become the culprit of a leveraged …
The plunge in the yen and debt bring economic crisis to the Land of the Rising Sun
Japan, with its huge debt and the yen’s slide, is bidding to be the star of the biggest economic and financial crisis in human history. The political career of Japanese Prime Minister Sanae Takaichi is sinking almost as fast as the yen these days — and the two developments are closely linked. The yen has …
China is gradually abandoning American debt, fearing a collapse of the US economy
For the first time since the end of World War II, the dollar is no longer seen as the sole and undisputed foundation of the international economy. It is not yet a collapse. But it is a gradual erosion of confidence that is spreading from the world’s largest economies to the central banks of emerging …
The U.S. is not “investable” – The withdrawal of funds from Scandinavia, and the Debt avalanche
At the World Economic Forum in Davos, President Donald Trump said out loud what normally goes unsaid, and in doing so, revealed a deep and dangerous vulnerability that the entire system has been trying to hide. Specifically, in an interview with Fox Business’s Maria Bartiromo, when asked about the possibility that European countries might respond …
If China and Japan sell off U.S. bonds, they will lead the U.S. into an economic death spiral
As Donald Trump’s White House ramps up debt issuance to cover its ballooning budget deficit, it will inevitably turn to Asia—the region is home to some of the largest holders of U.S. Treasury bonds. The $9 trillion wall by 2026 Meanwhile, there’s a chart that should scare every investor, policymaker, and citizen in the world. …
Will Japan become the next center of a global debt crisis?
The sell-off in Japanese bonds is a warning to global economies. As yields – particularly at longer maturities – soar and demand collapses, Japan is becoming a case study in what happens when investors lose patience with huge deficits and debt. Japan’s government bond market is currently facing an existential crisis, marked by a sharp …
New Currency War: Japan Challenges China and the Yuan with Yen Devaluation
On Tuesday, November 11, 2025, the yen fell to 155 against the dollar, prompting intervention in the foreign exchange market. Forex traders are now familiar with the routine that accompanies yen weakness. Just as on Wednesday (November 12), Finance Minister Satsuki Katayama warned dealers not to test her resolve as the yen hit a nine-month …
US and China lead markets to hell in 2026
China’s economic slowdown is drawing a lot of attention in Manhattan boardrooms. While Asia’s largest economy is not faltering, its 4.8% growth rate in the third quarter—the slowest this year—is sending up warning signs everywhere. Even the positives come with (serious) asterisks. For now, external demand is keeping China on track for this year’s 5% …
Massive collapse due to public debt crisis: G5 of G7 could collapse
Some of the world’s largest economies are at the center of a bond market storm, as investor concerns grow that governments are making the necessary reforms to reduce uncomfortably high levels of debt. And how could they, after all, as growing social inequalities and the emergence of other major problems such as immigration lead electorates …