Japan’s Debt Bomb Is About To Wreck The US Dollar
In this video, I break down Japan’s debt situation, why its bond yields are rising to multi-decade highs, and how that could impact the U.S. economy.
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Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
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⏱️ Timestamps:
0:00 – Start Here
0:26 – How Japan Became Indebted
6:06 – Bigger Than Just Japan
9:44 – Two Factors Making It Worse
11:41 – 3 Scenarios
30 Comments
Hey all! I know that there are other geopolitical events much more "in the news" right now, I had planned and filmed this video way before those events – so I get that this may not be as timely as you may have wanted it to be, but I still think its valuable information to have out there! I also wanted to push myself to film in a different country, and not at my desk. I THANK you so much for tuning in, and I appreciate any feedback and your time. Cheers, thank you for being here – H
From my understanding, the government borrows money from bonds. but the government sets the rate at which they borrow. that kinda seems funny to me. Imagine if you lent money to your friend and he was the one to decide how much interest you charge
Daddy Yankee would never let that happen… And Japan is fixing population problem by discourage foreign migrants so all good!
on a 200K USD VA loan im paying roughly 1,500. Can you guess how much of that payment is interest, alone? I promise its way more than you could guess
The claim “Japan’s Debt Bomb Is About to Wreck the US Dollar” is a sensational narrative that circulates often in macro YouTube and finance media, but the underlying economics are much more nuanced. The short answer: it is very unlikely that Japanese debt will “wreck” the US dollar.
I watch many financial videos but have never seen yours. Awesome work in explaining and teaching. New subscriber. Thanks.
9:35 oh dont worry they already gutted most program that helps people. They gave billionaire tax cut while taking funding away from school lunch.
I feel like this video is just Humphrey deducting his Japan trip as a business expense
Humphrey, fantastic job on the matter. Well done.
I happen to be a guide in Kanazawa and the region, if you come up, feel free to hit me up, I would absolutely love to show you around!
Keep it up & Enjoy Japan. 🌱
Japan is also the largest creditor which cannot be taken out of the discussion when talking about debt.
Great video! Love the scenery. Make more videos like this! I'll be in Tokyo next week as well – hopefully cherry blossoms bloom while I am there!
Japan is about to face an energy crisis, their oil supply is cut.
You’re in Kasumigaseki? Very interesting choice but did you visit the Imperial Palace?
Without government, who would give you debt notes and call it money?
Without voters, who would elect government?
Without taxpayers, who would fund those actively divorcing you from your earnings?
Yep I live in Japan and was just in lawson yesterday and thought about how quickly “inflation” has sprung up. That onegiri has gone up to 160yen now 😢
I hope Japan debt exposes there corrupted country of evil bankers and money printing
What does this mean for the USD/JPY ex rate? Should I be buying JPY now at around 160 to the USD? Will the JPY strengthen or weaken against the USD in the coming months/years? Thanks!
Hance why billionaires want you having kids. If people dont have a TON of kids, the rich will have to get actually taxed to cover all the people that made them rich to start with.
I think it’s refreshing that you produce content that others might not since there’s a large number of videos on general investing already.
Listen, your "Japan debt bomb" narrative is the pinnacle of economic illiteracy—a frantic doomsday cult built on the fundamental inability to distinguish a sovereign currency issuer from a corner grocery store. You’re operating on a "household checkbook" brain, pathetically ignoring that Japan’s debt is denominated in yen, a currency it prints at will, making a technical default impossible. To suggest this triggers a USD collapse is a delirious leap in logic; you’re conflating internal accounting shifts with the structural hegemony of a global reserve currency. Stop masquerading your moral panic as macroeconomics—a government’s deficit is the private sector’s surplus, and if you can't grasp that basic double-entry bookkeeping, you have no business predicting the end of the financial world.
Global interdependence has to end one way or another.
I say rip the Band Aid off and let those yields run!
What a complete bullshit system
Keep conflating a currency issuing government with a private sector household, and please continue to believe this is a problem.
Japan’s debt is mostly in Yen based. No much borrowing from other countries.
Humphrey you kept saying their debt is “every year” but that’s not true. Their income is every year. Debt is a snapshot in time. They’re not paying 230% of their income “every year” in debt.
Its too far. Its bad for China…
As long time subscriber from Tokyo it’s great to see a video on Japan! Even if it’s to remind us of the time bomb that our crippling debt and aging population presents to the world! 😅
Your points about the country’s shock at experiencing inflation is spot on, a notable example is an ice cream company who made a commercial to apologize that their prices where being increased by 10 JPY ($0.06) after remaining unchanged for nearly 50 years. I think the issue is particularly hard for the retired population who no longer have a means of income and now watching as their savings no longer go as far as they used to.
Welcome to Japan! You're right about the old people. Where I live in Tokyo, everyone's retired. I once walked from my house to the train station; not a single person I passed was capable of walking without some kind of mobility device.
A video about the reverse carry trade while NOT mentioning the GENIUS ACT and how Stablecoins will balance the bond market is CRAZY!
Interesting video, interesting topic. 🤘