**Optimistfields** (0:02)
America's $39 trillion empire is built on a house of cards that only remains solvent as long as foreigners hold our debt. Well, the biggest holder of US. Treasuries is now, for the last couple of weeks, talking about dumping trillions of dollars to protect their own country and their currency.
But really, is it all a coincidence that this same country just formally legalized Bitcoin as a financial asset last week?
I got a lot to cover for you, and a very special guest today. And honestly, no one better to fill in with me on today's show and on this topic than one of my favorite content creators, Nolan Bowerly, AKA CountBTC. Guys, if you listen to the show, I plug Nolan all the time, so I'm super excited for this. Nolan, welcome to the show.
This one's gonna be a special one. So let me just dive straight into it. Nolan, like I said before the show, don't feel bad about cutting me off. I want you to be a part of this show. So first of all, guys, actually maybe me and Nolan need to lay the context here. We're talking about Japan. And if you know anything about the Bank Of Japan, they've had historically low interest rates. They've basically been the venture capital central bank for the world. And it does seem like they are in a very rough position right now. They're in a hard place right now. And there's been a lot of speculation that the end of the fiat era, free money era might be coming to an end, depending on what the Bank Of Japan starts doing. And Nolan, I'm sure you've seen these leaks and speculations that have been going on on Twitter. Obviously, as of now, nothing official has happened, but we've had some very interesting Bank Of Japan insider posts that are really making everyone wonder what exactly is going on. And can this game, can this free money roller coaster continue? So let me start with some of these tweets. Nolan, again, jump in when you feel like it. This is Yodo Kanzaki Real. Again, Bank Of Japan insider. And this is the first tweet that got everyone kind of worried on Twitter. And it goes, the measures being prepared by the Bank Of Japan will affect the lives of billions of people. To the people of the Western countries, I offer my deepest apologies. This is not a personal matter. May God's blessing be upon you. He continues, Japan's wealth is returning to its homeland. By any means necessary, the Bank Of Japan has decided, essentially hinting at, look, Bank Of Japan is gonna drop those $1.14 trillion of treasuries. They're trying to protect their currency because the Japanese yen is at like a 30 year low against the dollar. They just had to raise interest rates to 1%, which maybe doesn't sound like a lot, but when you've historically had basically 0% interest, it has ramifications for entire global economy. Going further, before I get Nolan to jump in here, Article 589 will be cited far more frequently than you imagine. Foreign borrowers should not assume that past approvals guarantee future funding. A warning to all borrowers who think they can continue to refinance through Japan, Article 589 is universal. And here's the last one.
Tokyo is being forced to make the ultimate choice. To end Japan's era of low interest rates and rebuild the nation's wealth, or to continue yielding to the current pressure from the United States at the expense of Japan. History will remember this moment as the time when everything changed. This is what everyone's been watching, and we did get some updates this morning coming out of the Prime Minister. But before I get into that, Nolan, I brought this up on the show.
You, I think, are the first person to put this idea in my head of, this is why Satoshi Nakamoto chose the pseudonym Satoshi Nakamoto. So can we start there, and then we'll kind of flush this idea out a little more?
**Nolan Bauerle** (3:56)
I'm wearing my pro-Japanese Satoshi Nakamoto hat here.
Indeed, the fiat, the way the whole yen carry trade has worked, the subsidy of the US dollar around the world, really was provided by the loser of World War II, Japan. And Japan, having lost World War II, was bound up in this American system that existed, not really the American system, more like the London financialized system that came from the Federal Reserve. And so Japan was put in subordination to the US system. Now, the story that we've been seeing from the beginning of this Trump administration was letting the Federal Reserve out of this role where they subordinate the Treasury. They're recalibrating the American system so that the Federal Reserve ends up being subordinate to the Treasury, which reignites this American system engine. Quite similar to what we're hearing from the Bank Of Japan here. They don't want to be involved in this London system anymore. They don't want to be involved in this hyperfinancialized fiat system. They want to have actual production. So we've been seeing this for a long time. Now, what we understand from as Bitcoiners, why the Satoshi Nakamoto pseudonym was there was because eventually what happened to Japan, all of this decade of darkness in the 90s, the yen carry trade, the inability of Japan to really create any inflation, to put interest rates up because everyone was using the yen as the subsidy for the US dollar.
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