How Japan’s Broken Bond Market Is Threatening Your Wealth—What You Must Know

Ray Dalio is calling it, the monetary order is breaking down and we're now on the brink of war, both internal and external. This is due to economic forces the world over that repeat throughout history. It includes a decline in confidence in paper currencies and debt as a category, and they no longer view it as a good store of wealth. The first chip kind of fell yesterday when the stock market lost over $1,300,000,000,000 in value. Some people are claiming that this is about Trump and Greenland. It is not. That comes later. That is a problem. It's a big problem and it's going to rear its ugly head and it is going to be, I'm sure similarly catastrophic. This just isn't the effect of that. This is about long term economic forces that are finally spilling over in Japan. The Japanese yen carry trade, which we have talked about before, has been fueling the global economy for decades. I was saying debt fuels this stuff? Well, you've got to have somewhere that's giving you debt at great rates and that somewhere has been Japan. And as rates climb, it's forcing people to sell off other assets that they bought on previously cheap Japanese debt. Japan's approximately $7,600,000,000,000 government bond market experienced sharp yield rises with long dated yields hitting multi decade highs. Now this can be counterintuitive. As the bond yields go up, the price is coming down. And as the bond price goes up, the yields are coming down. What happens is if people know that, oh, you can really trust this, you're gonna get paid back over time, then the yield of that is gonna be low. They don't have to incentivize anybody to pick up that debt because it's like, hey, this is a super, super safe place. As people become concerned that the debt is mispriced or that there's instability, then the price is gonna go up because they have to find, or the yields are gonna go up because they have to find a way to get people to come in and buy this. But to make the yield high, the price has to be low. So what you're seeing is the, the prices of Japanese bonds are dropping like crazy so that the yield can go up to entice people to come in. So basically, people are panic selling their bonds and they're getting out of the Japanese debt game. Now part of how I know this is true is because of the price action in Bitcoin. The important thing to understand is Bitcoin trades twenty four seven, three sixty five without delay. So you can see far more accurately what it's based on because The US stock market was shut for the holiday weekend and the Bitcoin price dropped right around the sell off of the Japanese yen. So Bitcoin fell below key psychological levels of the 89,000 ish range during the sell off. Now, if this had been a …