Japan’s Warning For The US Economy (Interest Rates Just Flipped)

"the bank of Japan is expected to unwind its negative interest rate policy in 2024"

"the fallout in us treasuries could be huge"

"Japan just declared that it's ending its negative interest rate experiment that it started 7 years ago"

"Japan's economy had the opposite problem they had negative inflation and their prices were falling"

"Japan had the bright idea to lower them instead but lowering them not just to zero like the US did during the pandemic but dropping the rates to below zero into negative interest rates"

"this year though marks the end of that experiment"

"if the United States keeps borrowing and keeps spending money like it's doing at a record drunken sailor Pace it means it would have to increase interest rates even more"

"as we've learned the negative side effect of doing that is that it increases the payments on our debt which means we have to borrow more by creating more treasury bonds"

"Japan has a 263 debt to GDP ratio which is the highest of any developed country in the world"

"having those rates too high means their interest payments on their debt will become that much more expensive"

"Japan does not want to see the failure of its own Banks"

"when Japan raises interest rates that will make the Yen stronger against the dollar which sounds like a good thing for Japan but when Japan's private sector sells all the products overseas and it converts the dollars that it's made back into Yen they'll have less Yen for it that means those private companies will make less money they're less profitable which hurts the stock market"

"the number one investor in the Japanese stock market is the Bank of Japan"

"they are worth less today than what they paid for them so they don't want to sell them at a loss"

"this entire situation with Japan probably won't have that much of an effect on the US economy and will still keep going on the same path"