Crisis In Japan: This Will COLLAPSE The Global Economy (Worse Than Greece)

Crisis In Japan: This Will COLLAPSE The Global Economy (Worse Than Greece)

foreign economies are slowing due to the impact of the trade policies of various countries a massive selloff of shares continues in Asia as Japan’s Nicke Now the rising cost of living is affecting all of us but in Japan Japan is about to trigger the biggest financial crisis since 2008 japan has the largest public debt of any industrialized country and there are fears it could be the center of the next global financial crisis most people have no idea it’s coming and here’s the scary part when Japan’s economy crashes it could take the whole world down with it so here’s what’s going down japan has been playing with fire for years they’ve been borrowing money like there’s no tomorrow we’re talking about debt that’s over 260% of their entire economy that’s insane to put that into perspective if Japan was a person they owed more than twice what they make in a year but wait it gets worse for the longest time Japan had this weird thing where their interest rates were basically zero some were even negative that means people were literally paying the government to hold their money i know it sounds backwards but that’s what happened japan has become the last country to finally ditch a policy of negative interest rates if you’re spending twice as much as your income you will go bankrupt and the economy will collapse we will become like Greece that’s why I think the tax raise is definitely necessary i used to work for a major construction company it was listed on the stock exchange i was quite high up earning a lot and then the bubble burst and I had to lay people off the Bank of Japan kept printing money and buying government bonds like they were collecting Pokémon cards they thought they could keep this going forever but guess what reality just hit them like a freight train see while the rest of the world was dealing with crazy inflation in 2022 and 2023 Japan kept pretending everything was fine overnight Japan unleashed another round of stimulus the cabinet of Prime Minister Shinszo Abbe approved the $274 billion stimulus the US raised interest rates europe raised rates but Japan they just kept rates at zero and hoped for the best well now inflation has finally caught up with Japan japan’s government has released growth data for the first quarter of this year and the numbers show the economy has taken a step back major Asian economy is on the brink of falling into recession the Cabinet Office of Japan is set to announce that Japan has entered a recession their currency the yen has been getting absolutely destroyed it hit levels we haven’t seen in over 30 years japanese people are watching their money become worth less and less every single day so what did the Bank of Japan finally do they panicked in March 2024 they ended their negative interest rate policy for the first time since 2007 the Bank of Japan lifted its negative interest rate policy on March 19th marking a historic change from an ultra easy monetary easing program that might not sound like a big deal but trust me it is markets went crazy japanese stocks dropped their bond market started shaking longdated Japanese bond yields rose from 3-W week lows after demand for Japanese long-term debt and here’s the thing japan’s bond market is worth about $8.5 trillion that’s massive when that market gets nervous the whole world feels it and here’s where it gets really scary for years smart money people have been doing something called the carry trade and the highly volatile market conditions seen recently may have eased but analysts say a key threat remains the so-called yen carry trade they’d borrow money from Japan for almost nothing and then invested in other countries where they could make more money it was like free profit a carry trade involves borrowing a currency from a place with low interest rates in this case the Japanese yen and then using it to invest in assets that generate returns like US tech stocks or government bonds now that Japan is finally raising rates all that money is rushing back home we’re talking about trillions of dollars moving around the globe and when that happens things get messy fast countries all over Asia are seeing their currencies drop stock markets everywhere are getting nervous this is what economists call contagion when one country’s problems spread to everyone else and look if you’re finding this stuff useful do me a favor and hit that subscribe button we break down these big economic stories in simple terms so you actually understand what’s happening because trust me this Japan situation is just getting started and you’re going to want to stay ahead of this now let’s talk about why this matters so much japan isn’t just any country they’re the world’s third biggest economy they make cars electronics and tons of other stuff we use every day toyota Sony Nintendo these are Japanese companies that affect us all but here’s what most people don’t know japan is also the biggest foreign owner of US debt they own over a trillion dollars in US Treasury bonds if Japan starts selling those bonds to save their own economy it could cause serious problems for the US too and it’s not just the US australia trades heavily with Japan so does South Korea in the last 5 years Japanese investment in Australia has quadrupled to more than $50 billion but South Korean trade officials have sat down with Japanese representatives over an ongoing trade dispute european banks have huge investments in Japanese companies when Japan sneezes the whole world catches a cold now you might be thinking “Okay but Japan has dealt with economic problems before they’ll figure it out.” And you’re right they have but this time feels different over in Japan the country’s economy shrank 7.8% in the April to June period from the previous quarter or 27.8 on year so back in the 1990s Japan had their famous lost decade where their economy barely grew but at least back then they had room to cut interest rates and print money now they’ve already used up all their tools they’re out of options their population is also getting older and smaller japan has recorded another steep drop in its population general Affairs Ministry says there are just over 14.6 million children in the country under the age of 14 fewer people means fewer workers fewer consumers and less economic growth japan is relying more on foreign workers as it contends with an aging society and fewer babies being born it’s like trying to run a race while carrying a heavy backpack that keeps getting heavier japanese companies are struggling too their stock market the Nikay has been all over the place one day it’s up the next it’s down japan’s benchmark stock index plunged on Monday as investors in Tokyo unloaded shares across the board investors don’t know what to think and let’s talk about regular Japanese people for a second they’ve been dealing with flat wages for decades rising prices bring another pinch to Japanese households even though prices are now going up because of inflation the research firm says in the months to come over 20,000 food products will see their retail price driven up their paychecks aren’t keeping up that’s a recipe for serious problems and the real estate market is also showing cracks commercial buildings in Tokyo are sitting empty home prices in some areas are starting to drop sound familiar it should because we’ve seen this movie before in other countries now here’s what makes the situation so dangerous for the rest of us japan is deeply connected to the global economy japanese banks lend money all over the world japanese companies have factories and offices everywhere if Japan’s economy really tanks it’s going to hurt everyone remember what happened in 2008 with the financial crisis that started in the US housing market but it spread everywhere because everything is connected japan’s problems could do the same thing but maybe even worse and Japan unexpectedly slipped into recession at the end of last year at the same time losing its title as the world’s third biggest economy the timing couldn’t be more awkward either the global economy is already dealing with wars trade tensions and lingering effects from the pandemic adding a Japanese economic crisis to the mix is like throwing gasoline on a fire central banks around the world are watching Japan very closely right now the Federal Reserve the European Central Bank everyone is trying to figure out what Japan’s going to do next because whatever Japan does it’s going to affect their plans too so some experts think Japan might have to choose between saving their currency or saving their bond market they probably can’t do both and either choice could cause massive problems for the global economy the crazy part is this story isn’t getting nearly enough attention most news outlets are focused on politics or or I don’t know celebrity drama but this Japan situation could end up being the biggest economic story of the decade so what happens next honestly nobody knows for sure but the signs aren’t good japan’s debt keeps growing their population keeps shrinking and now they’re running out of ways to keep their economy afloat japan has raised its economic growth forecast for the next fiscal year an expected boost from a 122 billion fiscal packages if Japan’s economy really does crash it won’t just hurt Japanese people it could trigger a global recession stock markets could plummet currencies could collapse jobs could disappear and it might all start with a country that most people aren’t even paying attention to and the scariest part about it is that this might just be the beginning if Japan falls it could create a domino effect that brings down other countries too we’re talking about a potential global economic disaster that nobody sees coming so here’s my question for you do you think Japan can avoid this economic disaster or are we heading for a global crisis that starts in Tokyo let me know what you think in the comments below and if you find this kind of analysis helpful to you make sure you subscribe to Econet we’re the channel that tells you what’s really happening in the global economy all right see you in the next

Japan just broke the global economy… and barely anyone is talking about it.

In 2025, Japan’s central bank panicked. After years of printing money, keeping interest rates below zero, and building up over 260% debt-to-GDP, they were finally forced to act.

The result? The yen collapsed, markets turned volatile, and a silent domino effect began. Trillions of dollars tied to Japan are now shifting across global markets, and countries across Asia are already feeling the hit.

This isn’t just Japan’s problem. It’s the beginning of something far bigger.

Japan holds more US debt than any other country. Their banks, investors, and companies are deeply embedded in the global system. If they start selling off assets or pulling out of global markets to survive, we’re not just talking about recession.

We could be looking at a global crash. One triggered not by war or oil… but by a nation most people stopped paying attention to.

⚠️ This story isn’t coming next year. It’s already started.

💬 Do you think Japan can survive this without pulling the world down with it? Drop your thoughts in the comments.
🔔 Subscribe to Econet for raw, fact-driven breakdowns of the biggest financial threats unfolding right now.
📬 Sponsorships & Media: business@econetchannel.com