$40 Trillion in Debt and America's Largest Mortgage Lender Just Collapsed! | Bitcoin Simply

**Nico Moran** (0:00)
The global economy is beginning to crack everywhere, but why? The largest mortgage lender in America just lost nearly half its value in a single day. 25 million Americans under 35 now live with their parents. Bitcoin's only positive catalyst was just crushed as Congress just said that it's gonna delay the Clarity Act bill passing until after the August recess. And the US dollar hegemony seems to be on its last leg. For the first time in 40 years, the United States imported zero oil from Saudi Arabia. And for the average listener, people think that all of these things are unrelated. They're all connected. Underneath of all of these different headlines is the exact same storyline. The cracks are beginning to show, not just in Bitcoin, not just in stocks, not just in real estate, but in the financial system itself. And once you understand what connects all of these stories, Bitcoin starts to look a lot different. Today, I'm going to show you why Scott Besson's interviews with Japanese reporters might be one of the most important interviews that you've never watched, and it explains where we're at in the current financial situation. I'm going to show you why the debt problem is much bigger than people realize. And why despite all the chaos, Bitcoin may actually be getting stronger. This is Don Tococo, Bitcoin Simply.
Let's go.
Alright, let's start here. This is one of the most important interviews in the world that nobody's talking about right now. A few Japanese reporters asked Scott Besson why the US intervened in the Japanese Yen. And here's what he had to say.

**SPEAKER_2** (1:22)
So, the first question is going to be, what was the primary objective behind the United States joining this historic coordinated intervention? And was it driven by the concerns over rising US long-term interest rates?

**Scott Bessent** (1:36)
So, good to be with you. And the reason we did the joint intervention was as a symbol.
The US wanted to join with our great Japanese allies to show that we think that the Taikichi government has the right policies that will lead to long-term Yen strengthening. And we believe that excess volatility and undue Yen strength could hurt indeed the Asia region and the entire global economy.

**SPEAKER_2** (2:07)
So, you believe in the issue of, but could a weaker Yen and a stronger dollar have negative consequences for the US economy?

**Scott Bessent** (2:15)
Well, we have a strong dollar policy, but when I look back, only good thing about being 63 is I've been in the markets a long time, and I remember the Asian financial crisis in the mid-90s, and one of the triggers for that was substantial Yen weakness. So, because Japan is such an important country and also a large exporter of capital with large trade flows, large capital flows, it's important for the Yen to maintain its value.

**SPEAKER_2** (2:49)
We have vast knowledge about Japanese life economy history, so I would like to ask you about that. I think that the FEMA repo facility has been affected, but do you believe more fundamental changes in Japan's physical and monetary policies are still needed?

**Scott Bessent** (3:04)
I believe that Abenomics has been a fantastic success. I went to Japan, I believe, first time in 1990 I've been more than 60 times and written extensively on Abenomics and Prime Minister Shinzo Abe. And I believe the past 14 years have been a success. And I think we're moving into a new phase, maybe Takaichi Namics.
And I believe that the Prime Minister understands that this is a less reflationary phase and that Japan has successfully lifted itself out of deflation and has one of the strongest economies in the world.

**SPEAKER_2** (3:46)
So the gap between US and Japanese interest rates will remain a major factor behind the yen's weakness. Considering the strength and resilience of the Japanese economy, do you think the Bank of Japan should continue raising rates at its next meeting?

**Scott Bessent** (4:00)
I'm not going to tell Governor Ueda how to manage the economy. I've known him for more than 15 years since he was a professor at University of Tokyo, and I have great confidence in Governor Ueda.

**SPEAKER_4** (4:16)
Does it mean to write the late hike in the meeting of MBOG meeting?

**Scott Bessent** (4:23)
Again, I am sure that Governor Ueda will do what is best for the Japanese economy, and the Japanese economy is very important for the world economy.

**SPEAKER_2** (4:39)
So, Jack, the Japan Ministry of Finance has described this as the completed form of the U.S.-Japan currency alliance. Do you share that view?

**Scott Bessent** (4:48)
I think we are in close contact. I think the alliance stems from the good relationships between our leaders.