Japan Just Sent a Warning to The Global Economy

"Because anytime there's more money in the economy or lower interest rates, Bitcoin has generally benefited. Like between 2020 to 2021, when interest rates are being cut, we saw Bitcoin prices skyrocket. In 2022, when interest rates went up and money was tightening, we saw Bitcoin prices fall by around 60%. The second thing that happens is it creates higher interest rates globally from a competition standpoint."

"if the government, not the Fed, if the government has to raise their treasury yields, that means you get a higher rate of return by lending your money to the government, but that also then pushes up mortgage rates."

"The Japanese economy is changing drastically where they are moving rapidly towards a shareholder first economy. They're changing their entire economic policy to be more like the United States to be driven by shareholder value. What does that mean in reality? They're working to increase their stock values."

"And number three has to do with United States debt buying. So the United States government also spends a lot of money that we don't have. We've been talking about the national debt problem here in the United States for a long time. Obviously, it's worse in Japan. But remember, the largest foreign lender to the United States is Japan. And Japanese investors are a big part of that. So, if now Japanese investors are looking at investment opportunities and they're saying, "hm, now the Japanese government is going to give me a real rate of return because before it was a negative rate of return, if I can get a real rate of return in Japan, maybe I don't need to lend my money to the United States. I can just lend my money inside of Japan." And the reason why that matters to the United States is because again, supply and demand. If the United States government keeps spending money that they don't have, which yes, they're going to continue doing in 2026, they're going to need to borrow that money."

"And yes, this directly impacts you here in the United States because Japan is the largest foreign owner of United States dollars in the world. In plain English, this change in economic policy in Japan can impact the value of your savings, the stock market, and even Bitcoin."

"Because of this negative interest rate policy, borrowing money in Japan was the cheapest place in the world to borrow money. And who do you think likes to borrow a lot of money? Investors, hedge funds, banks. So you have these big investing firms in the United States that were now borrowing money in the Japanese economy in the yen and then using that money to then buy assets in the United States to buy stocks, to buy real estate, to buy other types of assets here in the United States because you can borrow the money at essentially nothing."

"And so, we had a lot of institutions being buyers because they could borrow money so cheap from Japan and then inject it into the United States stock market. And if interest rates are rising in Japan, that can mean less buyers into the markets."

"The Japanese economy is changing drastically where they are moving rapidly towards a shareholder first economy."

"Japan's bond market is now facing a crisis that's been brewing for decades. They have too much debt and the interest rate on their debt is rising very quickly."

"And the reason why that matters to you is because if the government has to pay higher interest rate to borrow money, that raises mortgage rates."

"If the United States government keeps spending money that they don't have, which yes, they're going to continue doing in 2026, they're going to need to borrow that money."