Will Japan's Bond Collapse Take Down the World Economy? | Here's What They're Hiding | Bitcoin Simply

**Dante Coke** (0:00)
The Japanese Yen and Japanese Bonds are literally blowing up right now. The two most important bond market indicators in the world. And all Bitcoiners want to do is talk about strategy selling 3,588 Bitcoin. The Yen is blowing out. This is the biggest story in finance. And at the same time, the Yen threatens to bring down assets globally, the US government is going on a media blitz promoting Trump accounts. What if these aren't separate stories? What if they're somehow connected in a global debt story of a system that's collapsing? Today, I'm going to explain why these two things are connected. Why the US government is promoting Trump accounts at the same time that the Yen is collapsing. This is the great collapse that the Bitcoin has been waiting for. This is Dante Coke with Bitcoin Simply. Let's go.
Twitter can be an echo chamber, especially Bitcoin Twitter. Today's giddy-yay media clip is from none other than Donald Trump.

**Donald Trump** (0:53)
But I will say this, to me, cryptos are very powerful. A lot of people are using it. Bitcoin, they're using it at levels that nobody... I don't think anybody understands really how powerful... And if we didn't do it, China would do it in a minute.

**Dante Coke** (1:07)
Yay, he says Bitcoin is important. They're gonna make progress on the strategic Bitcoin reserves they've been talking about for two years and absolutely nothing has happened with. Meanwhile, the most important market in the world is collapsing right in front of us. Japan's economy is in huge trouble. Yesterday, Japan's 10-year and 20-year bond yield hit all-time highs. Rising bond yields means that investors' confidence in the economy is crumbling. You know what tells me that there's trouble in Japan's economy? People and their businesses are bowing out and filing for bankruptcy. Japan's culture is one that when you saw in the World Cup game when they lost, they took a bow and respectfully left the arena, even cleaning up trash after a game that they should have won. These people don't quit. It's not part of their DNA. And so when I see bankruptcy skyrocketing, that means one thing. There's actual trouble. And it's because of a weak yen. The weak yen has collapsed to 165 yen per every single US dollar. And with Japan's debt to GDP above 200%, this means that this carry trade that's going on all around the world means trouble for everyone else. What happens in Japan affects us all. There's a Japanese microanalyst named Yuto that says that the measures that they're taking are going to have massive implications on the rest of markets.

**Yuto** (2:18)
It says the measures being prepared by the Bank of Japan will affect lives of billions of people. To the people of the Western countries, I offer you my deepest apologies. This is not a personal matter. May God's blessings be upon you. We've been telling you the era of cheap money is dead.
I believe they're talking about interest rates, the reverse carry trade. We've been talking about this for a long time. Private credit markets under massive stress.
If they're talking about the reverse carry trade and they start raising rates like crazy, it's going to unwind everything. This is a catalyst that could happen. Now we don't know who this is, but I assume what they're referring to is the fact that the Bank of China is gonna have to make some drastic measures to save their economy. Now remember, everybody has to pay the piper at some point. When you borrow cheap money and you didn't truly, truly make the right decisions and pull profits at the right time and you get stuck in high interest after running cheap money for a long time, you're gonna have to make some decisions to pay that debt off. And so that's what's about to happen.

**Dante Coke** (3:38)
What this means is the end of the easy money, the unwind of the carry trade. The Japanese in carry trade is this, trillions of dollars are borrowed at artificially low rates kept low by the Japanese bank. Investors all around the world borrow these bonds, effectively shorting them, and use them to invest into other assets that can earn a higher yield of return. This has made itself into lending products and private credit all around the world. When you see a private equity company rolling up SaaS companies, or buying construction companies, or HVAC companies, yeah, this money is funded by cheap debt, funded by what happens in Japan. And that's why I believe you're starting to see private credit be distressing the United States, which is actually just as big of a market and looks exactly the same as the subprime crisis in 2006 and 2007 Except all of these PE companies are privately held and all of their investments aren't marked to market every single day, like they were with mortgage rates. And you're starting to see it with redemptions. All of these private equity firms, Apollo, KKR, Blackstone are all getting out of these instruments where they are underwater and locked up in long-term investment vehicles with rates that they now owe at a higher rate than what they borrowed at. And this means trouble for the stock market. This is gonna be the catalyst that causes the Fed to print. Because the stock market is the thing that is too big to fail now. The only thing that America makes is financialized products. We defend the world and as a form of payment, we export dollars as a form of indentured servitude to the United States all across the globe. The problem with the United States economy is this. Given that we don't really make anything, we don't produce anything, when the stocks go down, there is no there there. And this is why this chart should stop you in your tracks. Why is consumer sentiment at an all-time low, even when stocks are at all-time highs? And that's because of the impact of inflation. What we actually feel in the real world is not what we're seeing on the charts when we look at our retirement accounts. The S&P 500 and the Dow continue to make all-time highs. In fact, the Dow has made its sixth $1,000 jump this year alone. And this is where we cross the bridge with Trump accounts. We have less and less people buying into the dollar hegemony all across the globe. While the Japanese yen is unwinding, confidence in buying US debt is also unwinding. And so the currency is collapsing under the weight of all of this debt that cannot be repaid. And so the person on the other side of the currency collapsing is you. There always needs to be another Patsy.