Japan’s Debt Bomb Explodes! $1.2T Global Exit Begins as Currency War Goes Nuclear

Japan’s Debt Bomb Explodes! $1.2T Global Exit Begins as Currency War Goes Nuclear

The currency war that’s been simmering for years just went nuclear and almost no one is talking about it. Well, yet Japan’s bond yield just smashed through 1.7%. It’s the highest since ’08, effectively torching the yen carry trade that has financed the entire world’s debt binge for three decades. The silent money printer is dead. Trillions that were parked in US treasuries, tech stocks, European debt, and emerging markets are now heading for the exits. The yen crashing. The dollar is wobbling and every major central bank is suddenly staring at the same terrifying question. Who blinks first? Here to join us to talk about this and more is Clen Chambers of a new FN. Clen, always good to be back with you. Welcome back. Good to be back. Your thoughts on what is happening in Japan? Um, is the story overrated or should we be paying attention because it’s about to hit us hard? Well, it what is going on right now is all about liquidity for sure. Now, the source of that liquidity issues is not totally clear because one party could be causing it to make another party look like they’re causing it. And I would tend to put the finger of blame not on Japan but on the uh government shutdown and the change around from QT to a different you know QE or Q flat. Can there be such a thing? And you know those that changing in gear and that intersection with the uh American government shutdown which disrupted cash flow um sets everything off everywhere. So if you look at at what’s going on um you can say well Japan is also um having issues with its bond market but then when you look at 1.75% yield as you said the problem is what when you think that America’s at four and a half or five or whatever it is today. So, you know, I I never really get too bothered with Japan and its its interest rates when they are, you know, just really low rather than really really low or non-existent. Now, obviously, the carry trade caused problems um a few months ago when it malfunctioned, but of course, what is needed is American liquidity, and American liquidity was the solution to that last time. And I’m expecting it. I mean, you know, I don’t have a hotline to uh the Fed. I’m expecting the Fed to potentially come out and be a little bit more aggressive than it has already been. It has already been pumping money into the economy. Um, which is because it’s being demanded effectively. The the um excess cash in in the market has gone to zero. But of course there’s a there’s something going on below the line of zero and that’s negative. So if you looked at the reverse repo which is really where all the excess cash is the indicator for excess cash. It’s where a lot of excess cash is parked. It was an absolute gigantic mountain and it’s been driven down and down and down and down by the Fed by which has lowered its balance sheet down and down and down and down. And it said it was going to stop QT I thought months ago. I thought I thought they said that but they carried on going down and down and down and down. And now they’ve said they’re going to stop it or have stopped it or nearly stopped it. But actually what happened was the banks said, “Ah, we’re out of cash. We got a cash pinch on.” And they pump money into what’s called the standing repo facility, which is a bucket of emergency money. Okay? It’s like, you know, when when you go to your your parents and say, “Oh, have you got five quid you can lend me?” It’s that and that was set up um when Silicon Valley Bank went down and all those crypto banks went down because that was one of the mechanisms to finance the bailout there or or the attempt to stop it all you know collapsing and it worked and they’re using it again and they have been using it again now for some time I mean a week or so and they’ve also been pumping money in as well on top of that. sort of been pumping the money in, but it looks like either they’re going to say, “Right, we’re going to keep it doing and it’s going to be fine in a few days time and you know, we’re not worried about a day or two. They should be, but you never know.” Or they will go, “Oh, hold on a minute. We’re not doing enough of this.” And pull the big lever and everything will do one of them. Or they don’t do at all just go, “Ah, forget it. We’ve been told we don’t know what we’re doing. You know, let the politicians sort this one out and So, I mean, you know, everybody’s looking at Bitcoin, which has taken a bit of a a tumble, although it’s gone up rather sharply this afternoon. That might actually be a sign that some money is being pushed in because it automatically goes into Bitcoin. You would expect because loose money, hot money, that’s where you put it. You put it into Bitcoin. So, all this excess money has been responsible in many ways for driving crypto. But it would be funny if it was down to the Fed to bail out Bitcoin, wouldn’t it? That would be ironic. I mean, do you really ever see that happening, Clum? Well, if they pump money in and people go, uh, Bitcoin’s come down a lot and I believe in it and maybe I don’t want Nvidia because their numbers aren’t going to be good in a couple of days. Where would they put it? They’re going to put it in the thing that they think is going to give them the best return, aren’t they? So, you know, the speculative money goes into crypto. And if that money that got pumped in got into the hands of people that wanted to be speculative about it, it will go where the chance of the highest return is. On the other hand, it might do the opposite. It might just go for bailing out the other assets which everybody’s got a lot of. And so they’ll take it and go, “Oh, I think we need to buy more of more stocks.” I think because what you’re seeing is positions being closed out. So, for example, if you um if you see a really really bad stock that’s really really unpopular, you might see it’s gone up today and you go, “Why did that go up?” Well, it went up because somebody closed a big long and their hedge was that company and that was a short. So, when you close short, the the the rubbish goes up, doesn’t it? So, when you are in these um crisises where everyone goes, “Oh, I’m going to leave the table. I got to take my chips and I’m not going to play anymore. They close the shorts as well as close the longs. So, the longs come down, but quite often the shorts go up and that’s one of the reasons and that’s one of the things to look out for when there’s a liquidity uh squeeze going on. If you suspect a liquidity squeeze, one of the like little little signs that there is one going on is that the shorts will go up. We’ll jump right back to the interview, but this is too important to skip. The real risk today isn’t just a market crash or recession. It’s the US dollar being reset, revalued, and losing all purchasing power. Prices keep rising. Incomes can’t keep up. And central banks around the world are buying record levels of gold because they see what’s coming. You can’t fix the system, but you can step out of the line of fire and position yourself the same way they do, like a central bank, not a common investor. That’s why we built the private wealth playbook. It’s free and it shows you exactly how to protect your wealth, privacy, and retirement through whatever comes next. So, click below or go to dannyreport.com and secure what’s rightfully yours. Well, let me ask you, does that bring you to your thesis that currency for war to explode 100%? Talk to me about what you mean by that. Well, I mean, the thing about gold and silver for that matter, this is held up well. If you think that this is a liquidity squeeze rather than something else, I mean, you know, they can easily drop $500 on gold, easy, um, $1,000 because when people have to stop being in the market because they’re getting margin calls or they can’t support their positions, they they they normally take their profits and they close down their profits and they run the stuff which they think has got the upside but hasn’t hasn’t made the return. So it’s quite likely in when you in a problem where there’s a cr well everything comes down in a crash doesn’t matter how good the company is they all come down this is not a crash but it’s the sort of situation where people are forced to trade in a in a way where it’s all about how much money they’ve got in their account how much collateral they’ve got to support their positions and I think gold and silver done really really well to hold up um in this sort of environment and I think that’s pretty bullish for And of course it’s running separate to liquidity. These prices in precious metals, particularly gold, have been driven by international tension. And that tension’s just not going away. So the prices really, it’s a one-way bet. Yes, it will obviously take some corrections, but until the world starts to get sensible and starts talking about global trade and peace and not messing about and claiming land is theirs and you know fighting over scraps that then until that that day comes until you know natural intelligence takes over you know gold is going to be you know under pressure to go up. So you are bullish gold and so yeah I haven’t well I haven’t actually touched any of my positions during this but yeah I’ve I’ve not touched any I wouldn’t I wouldn’t even consider I mean even though I I can say look back when I when this broke out the initial breakout around 2000 or whatever it was and I wrote a piece for for saying oh go’s breaking out yeah I predicted it to go to three and a half and then a few um a couple of months later said actually looks like four and a half and it hit four and a So, you know, righteously, I should just sell because it hit what I said it was going to hit. But reassessing it, I think it’s got another 20% in it easily. And, you know, if things really really do heat up, I mean, the sky is the limit unfortunately for for gold. And it could go to 8 to 10,000. But why do you say unfortunately? Why do you say unfortunately? Well, I mean, you know, gold doesn’t care about me. But on the other hand, I I I do wish for happiness and peace and gold is for war. So the higher the price is, the closer you are to that terrible thing. And it’s an indicator. Well, that’s kind of has been pretty strong. That’s kind, you know, I was just at this uh precious metal summit and that was the message uh from some of the speakers, the keynotes that sure you know, we want gold to go higher, but be careful what you wish for. And and to your point, Clen, well, I I I wrote that a long time ago, going in falls, but I’ve kind of changed my mind about that. It’s, you know, gold doesn’t care about what I think. You know, I I I can’t stop the third world war. You know, I’m not Iron Man. And so, the first responsibility for individuals is to to provide for themselves and their family. So, you know, gold is essentially one way to hedge against that. And and therefore it’s it’s that’s the important thing because you know the people who call these shots they’re they’re not absolutely just not influenced by us. And so you know you don’t wish for it. It is what it is. And you don’t back it because you love gold. It’s just another asset. It’s just it’s not a religion. It’s an asset. And that asset, if the things that are unfolding now, which you can see in front of your own eyes unfolding continue, gold will continue to rise. And you know what what that price is and when they decide that they’re actually going to step back from these silly games. Uh we don’t know, but gold is a hedge for that. Yeah. So, World War II is still very much um a a risk, a real risk for you, Clem because others would make the argument, oh, things seem seem to have calmed down a little bit. Um but of course, it’s all about perception and reality. And what’s your take? Well, my take is um what is China going to do with Taiwan? And is it going to do the the stupid thing of actually, you know, going and trying to um invade it or whatever that means or or I mean, you know, what is it going to do? It’s got his army ready. They they’ve made it clear that they want Taiwan to rejoin the family. What happens if they do that? I mean, or how do they do that? How do they try to do that? I mean, they got these ships that are basically climb up cliffs cuz Taiwan is surrounded by cliffs and there’s not many beaches to land on. So they built these special ships on like big legs and and runaways that put you on top of cliffs. Well, that that doesn’t fill me with confidence that they’re not going to do it. And you know, if they had any sense, they would just carry on growing their economy, outstripping America one way or the other. And you know, it it will all go their way without any of this trouble. And and would the US get involved? Well, I mean, it’s a good question. What would that what would the US do if they did? I mean, would they just say, “Oh, that’s very bad of you. We’re going to sanction you, blah, blah, blah, blah, blah.” Or would they, you know what? It’s almost unknowable. I want to talk to some people who who have scenario planning for what would happen next. I can’t believe America would end the world by um going, you know, fully in on that and um you know, and then what and you know, and then what? So that is the sort of thinking that drives um the sort of defensive investments um which would be silver mainly in retail but gold in governments. Governments are thinking well but they say they’re going to do it and we believe them but what happens then and then what are we going to do? I don’t know what we going to do but we do need to have gold in the warehouse because boy are we going to have to start buying things in gold if this all goes wrong. I have to add there was also quite a bit of bullish sentiment surrounding platinum in the room. Oh yeah, I love platinum. Love platinum. Absolutely love platinum. I mean it’s funny that I was writing all this a year ago and now all of a sudden everybody’s talking about it. Yeah. I mean do they read my stuff? I do. No, they see your show. That’s what it is. Make the case make the case for platinum because we don’t talk about you know central banks obviously not buying platinum yet. This is very controversial then right? in terms of wealth preservation, you know, go for it. Let me work it backwards. First of all, most importantly, in my book anyway, they only make 200 tons of it. 200 tons. I mean, there I mean, that still baffles me. Yeah. Yeah. So, you know, and I’ve checked it so many times cuz I keep going, I don’t believe that. I can’t be right. I checked it so many times. So, 200 tons. Now, the reason it got so low and it’s still low is that most people still think that the world is going to be worrying about um environmental issues like they were a couple of years ago. They still should carry on worrying about them. But what actually replaced that is a rust to generate energy. And energy is going to demand is going to go 2x, 3x, 4x, who knows how many x’s because of all these server farms that they’re building for AI. Yeah. And they’re going to build them. It’s a fabulous uh revolution economically. Um it’s money well spent. But what it means is not enough electricity. So if you got electric car, ooh, they probably won’t want other people to have electric cars because they want that electricity for AI and all those server farms. Well, what does that mean for the internal combustion engine? Does that mean they’re going to stop making it like they said two years ago? Oh, no. We’re not going to have in internal combustion engines anymore. No, of course not. Oil will go for internal combustion engines and electricity will go for server farms. And that means they’re going to have to be using and they’re not going to stop making cat converters where all a lot of the platinum and platium go. Okay. In fact, there’ll be such a rush for energy that you might imagine they might need to make a lot more cat converters for um you know exhaust fumes because the demand for energy I mean it’s almost in fact most people just go oh I can’t get my head around how much they’re going to need for that. It’s going to be a lot. It’s going to be a multiple. And for that, you’re going to need environmental remediation. And platinum and palladium are two elements that that are used as catalysts for the remediation of pollution. So therefore, the demand should not only not disappear like it was when the car um stuff was going to go away. It should go like that. Now on top of that platinum and palladium are useful in things like fuel cells which is an alternative way of generating energy and the demand for generating energy is going to be just multi-dimensional. That’s why they’re building all these nuclear power plants. I mean remember the day not so long ago when if you said hey how about a nuclear power plant? They’d they’d hang you from a lampost. I mean it was the absolute, you know, spawn of Satan was nuclear power. And now everyone’s saying, “Oh yeah, we’re going to build lots of that. Oh yeah, yeah, yeah.” Why do you think that is? It’s because it’s they’re going to need it for all this AI. And they’re going to need to they’re going to do it for AI because governments need AI because it’s the only way they can compete with other governments that have AI. So good point. There’s infinite demand, finite supply of commodities, infinite demand for AI, infinite demand for energy because that’s what AI boils down to being. Yeah. So that changes absolutely everything. And are you buying more platinum now? I’ve I’ve got so much platinum I you know it’s it’s it’s you’re I I have enough anymore and I would be breaking my rules of diversification which I probably have but I’ll be breaking them worse. So platinum palladium I I have I have a lot of actually I hold it in ETF. ETF is a very good way to hold it. um American ETF and um you know physical platinum physical padium ETF US-based. So any any Well, we like the physical stuff. I like the physical stuff. I don’t like going leverage. I don’t like it being paper. I don’t want someone to tell me I’ve got a load of platinum mines that suddenly only physical. All right, so Clem, bullish gold, bullish platinum. Let’s wrap up on this one. Uh last time you were quite bearish Bitcoin I believe and now um you know fear is engulfing engulfing Bitcoin traders worrying it’s going to go down to 80,000. There’s talk of 70 75,000. Your thoughts on BTC. Look it it it’s it’s very hard to time this stuff. A year ago I sold 100,000. I said there’s 20,000 to go. Maybe probably most likely that’s where I think it’s going to go. But when it when it does go down, it’s going to go down to 60,000, maybe 40. I don’t want to be sat here with a 60,000 downside and 20,000 upside. So, goodbye. I bought a 20,000 in a bit. I’m out, right? And then I thought it would probably go down three or four months later. Well, a year later, it seems to be doing what I was expecting. Doesn’t mean it has to be doing it now. There is this liquidity squeeze going on and that’s going to hit the frothy um asset hardest. And that’s what has happened. So if all of a sudden the Fed came out and dropped a few trillion on everybody, then it would probably not crash. But if it doesn’t, if they don’t, then I think we’ve begun that crash section that I mean, they did it four years ago, did it 8 years ago, did it 12 years ago. It’s it is what it does. Up like a rocket, down like a rock. Boom bubble bust. And the bust level is somewhere between 45, you know, it could go further down and 60. You know, if you were lucky, it would be 60. If if it was, you know, more pandemonium than usual for Bitcoin, and that’s saying something, it would be 40,000. And somebody asked me, they said, would you um would you be buying at that level? And I said, well, no, I’d probably be looking at Salana at 50 because there’s lots of other good stuff that would get hurt even more. And that’s probably where I would look if I if I hadn’t decided there was better places to play. And you know, I’ve got I’ve had crypto exhaustion now for for quite some time. It’s just, you know, too much of a roller coaster, but it’s just too much. It’s too fiddly and and unpredictable and there’s too many wild men involved and, you know, made me Yeah, it was very I’m over crypto. It made me a a lot of money, but I’m over it now. Wow. You heard it here, folks. Clen Chambers is over Bitcoin. Crypto, I’m not over blockchain. I think blockchain is going to going to have potential because blockchain could bring a load of of cryptoowered crypto. You see, crypto cryptocurrency. That’s just the the tip of the spear on blockchain and it’s the one that everybody’s got fixated about because there’s been so much money made and so much hype and so much, you know, so much money has come out of nowhere. But blockchains, when you couple cryptocurrency with an application, a use case plus a cryptocurrency, and then you get something really interesting, and there’s not been enough of that, and it is coming. I want to just get this in because there was so much buzz around what Tether’s doing to the gold space. Um, I think we spoke about it last time, uh, but since then, you know, they’ve hired top HSB traders to add momentum to taking over their the bullion market. We’ve seen the stakes they’ve taken in uh royalty companies. I mean, any thoughts on what Tether is trying to do with gold. Well, I I I think they want a diversified portfolio backing. And you know, if you’re if you’re a dollar and maybe you think it’s going to go down, maybe if you can shift a little bit of your backing away from the dollar, then you end up making pure profit, don’t you? because you you’ve backed a zillion let’s say a million in dollars and you’ve got a million dollar bills or a million dollar in treasury bonds. Yeah, maybe the treasury bonds interest rate goes down so the value goes up. So you’ve made a profit, haven’t you? Because you’ve only backed that much. But if you say put it into things that are not dollars that are not going to move while the dollar falls, say the dollar falls 10 and you’ve hedged hedged it out. Well, you just made 10% on your float. Isn’t that about 4 billion? So they’re probably probably thinking along those lines, which is, you know, a bit of a dangerous course, but I think the Tether people have have surfed several sharkinfested waters in their time. So there you go. Why not? Why not? But of course, they got to stay backed. They’ve got to stay backed. And they’ve made a lot of money, so they’ve got way more than they’re backing. But of course, banking is all about um milking the float, so to speak. the money that you’ve got because people trust you and then taking that money and milking it hard to to extract your profit that they don’t get back. I mean that’s how banks make a living and tether is effectively in a way not only a bank but an issuer of money. So that’s semi um autonomous state in a way. Clam Chambers a new FN thank you for your thoughts today. We will see you soon. Thank you. Thank you for having me and thank you all for watching. As always, if you’re looking uh to learn more about gold, silver, or platinum, reach out to my incredible colleagues at ITM Trading. The link is below in the description. You can book an appointment. It’s a free strategy session. Tell them I sent you. They’ll take extra great care of you. And we will see you all soon. Thanks for watching.

The currency war that’s been simmering for years has just gone hot, and the epicenter is Japan. “Japan’s bond yield just smashed through 1.7%, the highest since ’08, effectively torching the yen carry trade that has financed the entire world’s debt binge for three decades,” warns Daniela Cambone. The silent money printer is dead, and the result is a frantic, global rush for the exits.

In today’s interview, Clem Chambers, founder of ANewFN.com, breaks down the fallout. He reveals how the explosion of this “nuclear” carry trade means trillions that were parked in U.S. Treasuries, tech stocks, and European debt are now being unwound, creating a violent liquidity squeeze across all markets.

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