America Crushed Japan With One Meeting In 1985. China Has Been Selling Ever Since
In 1985, Japan was the most feared economy on Earth. Japanese companies owned Rockefeller Center. Japanese investors were buying Pebble Beach, Columbia Pictures, and prime Manhattan real estate. Japan held more American government debt than any other country on earth. Japan was America’s banker.
Within ten years, Japan had lost everything. Not to a war. Not to a natural disaster. To a meeting in a hotel in New York, where five finance ministers signed a single document that doubled the value of the yen in eighteen months — and triggered the asset bubble that destroyed the Japanese economy for the next thirty-five years.
China currently holds $800 billion in US Treasury bonds. In 2013, it held $1.3 trillion. That’s $500 billion sold — quietly, consistently, methodically. China watched what happened to Japan. And China is making sure it doesn’t happen to them.
What You’ll Learn:
– How Japan became America’s largest foreign creditor in 1985 — and why that made it a target
– What the Plaza Accord actually was and how five signatures in a hotel room doubled the yen in 18 months
– Why the Bank of Japan’s response to the Plaza Accord created the bubble that destroyed everything
– How Japan’s Nikkei fell 60% in three years and real estate never recovered — 35 years later
– Why China has been selling $500 billion in US Treasuries over the past decade and what it’s buying instead
– How Japan currently holds $1.1 trillion in American debt and why its selling could dwarf China’s
– Why America needs $2 trillion in new Treasury buyers every year — and what happens when they disappear
The Pattern:
1985: Japan holds $200B in US Treasuries. Runs $50B annual trade surplus with America.
September 1985: Plaza Accord signed. Five finance ministers. One hotel room. Yen doubles in 18 months.
1989: Bank of Japan raises rates. Nikkei falls 60%. Property collapses 70%.
1990–2024: Japan’s lost decades. Nikkei only recovers its 1989 peak in 2024 — 35 years later.
2013: China holds $1.3 trillion in US Treasuries. America’s largest foreign creditor.
2024: China holds $800 billion. $500 billion sold. Gold purchases hit record levels.
2025: America pays $1 trillion per year in interest. Needs $2 trillion in new buyers annually.
Japan thought its $200 billion in American debt made it a partner. It turned out to be a leash. China is cutting the leash before America pulls it.
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#China #Japan #USTreasuries #PlazaAccord #Dollar #ReserveCurrency #EconomicHistory #ChinaEconomy #DebtCrisis #Economics
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47 Comments
Never trust America
Unable to regulate the exchange rate of China's currency, the US implemented tariffs that ultimately did the same, making Chinese goods expensive to sell to the US.
The difference this time is, it doesn't make Chinese goods expensive for the world, so China can shift its exports elsewhere. Meanwhile, China continues to develop high technology so it can create new products that cannot be easily copied and made by other countries.
In the end, whoever is the pioneer of technology will rule the world, because they can control the market, accumulate wealth and have military superiority.
Countries holding gold will see their gold reserve value drop cause the value of gold will continue dropping hence cause the dollar will appreciate.
IS Christina na doing a mistake with Export production
China, fix this problem, my stolen money, China, I don't want it now, don't let things escalate just because you're taking it away.
Making deals with Tigo China is useless; you don't return everything that was stolen.
You're uncovered, China, you prefer to pay me, get ready.
China doesn't have American military bases. Big difference
Japan is USA's dog only!
Ok, …. got it. The fed said, Jan 2026, will start quantitative easing, they will defer mortgage back securities to the banks, and the fed will increase it buying of treasury.
Soooo, the eagle will print and infuse the dollar into japan and China, giving them return on what they held. That should lock in some confidence.
But, now here's a fine opportunity, to counter China, … the usa must use this iran situation, in its monetary policy favor. We tore some stuff up, ok turn on the printer and infuse iran with the dollar, and put them on the japan account, here's reparations, buuuuut, annually you are to buy treasury dollars, ooo said amount.
Buuuuuut, the most right now thing America must do, is to remove sanctions, throw the sanctions idea in the trash. You the reserve currency, foe and ally should have access.
Punitive measures with the dollar has given rise, credit, and validity to new alliances and soon new currency.
The eagle is in a pinch, but there is a way out, if it 1st stop this coffer draining conflict, set a new moral tone, and place honey, where vinegar has been used.
❤Thank you very much
Japan is nowadays a country that's lost its backbone, its pride and its independence. Just a shadow of its former self, now that it's a docile serf of Washington DC.
Iran must stop every ship crossing if they are trading in USD…. That's the only way….
China is not japan
China is only responding when US ends it's engagement policy with China and adopts containment. The 2008 help from China will not happen again if US faces a similar or worse crisis today.
As of early 2026, China holds about $680 billion in US treasury bonds, not $800 billion.
It is becoming risky to hold US debts as they are not fiscally responsible. They are still spending like crazy instead of controlling their debts.
His quoted figures were more than a year ago. The US's government debt is nearer to US$40T than 36T, and China's holding of the US's debt is now below US$700B instead of 800B
Today, USA debt is close to 40 trillion USD 😂
China Is Jumping Ship To Avoid Being Drowned.
👍🇨🇳👍💪✌️
First, the U.S. lost the trust of the world with Trump blackmailing the world for over a year – soft and hard power evaporated.
Step 2 – the U.S. just needs to start an unwinnable war to dig up their already eroding foundation. 😱
What's the game plan here?😳
Japan lost their dignity! No need to feel that way Japan! We will help you to crush America!
THAT is how when your math is poor. Now Japan is a ladyboy of CIAsm
Never Be Financially Vulnerable
And everyone in the world blamed China's currency controls as communism at work, whereas it is a CAPITALISM defense mechanism right from the start 😂
Japan served as recycling tool of dollar with its trade surplus into US Treasury Bonds.
Per capita GDP was already higher, Japan was almost caught up in total GDP
China to USA. Check mate
五億人の、失業者、中国わ、破産しました、バブルが弾けました、アルゼンチン、わ、破産してます、失業者、多数
中国わ、破産してます、一党独裁国家、習近平、わ、ドル札で何かやってるが、中国わ、破産してます
I am 80 years old. When bar hopping with my Japanese business friends in Akasaka 50 years ago, I was surprised to see sashimi and sushi being sprayed with gold dust. I asked why. They replied gold dust did not make the flavor better, but it gave a luxurious feeling. Next week, I will go to Japan for 2 weeks, business/cum sightseeing in Fuji mountain area. It always saddens me to see Japan going downhill steadily for the last 50 years. The sight of Toyoko Kids in Kabukicho/Shinjuku is heartbreaking. Japan must dump unhealthy western culture (keep the good ones)and restore their Bushido spirit.
Being an enemy of the US is Dangerous , being a friend of the US is DEADLY. Henry Kissinger
I find history funny and many analysts compare the era of colonialism and post colonial era. The most primitive people were mentally controlled by desire to dominate by illegally extending their economic borders. I believe the Israel and Blinken's statement that HAMAS can end conflict by surrendering and signing his prepared document. Political leaders must learn from UN protocol of equality of nations and that made Russia to risk stopping USA's desire to colonize Cuba
Japan suffers from Stockholm syndrome… Time to get over it and deal 'normally' with the USA. It starts with rebuilding it's army.
日本当时怂了，现在伊朗都不怂，你觉得中国会不会怂？
The US is a menace to the world
Yesterday, it is Japan who threaten American economy.
Today is China
Tomorrow might be South Korea, India or Japan again.
They have about 10 to 20 years preparation to fight a military war, trade war or tech war against the US.
And still Japan kisses the US's ass and lick their dirty boots
The Japan that can say no 😂😂😂😂😂😂
Japan is an American colony. And they forced them to sign it.
China is not a colony
moin de 700 milliards maintenant
moin de 700 milliards maintenant
Japan's leaders are so dumb & stupid. After the US orchestrated the collapse of Japan, Japan's leaders still lovingly lick the boots of the US
Japan's monetary policy, like strategic and tactical nuclear weapons, has continued from the end of the war to the present day.
This is something that has been built up over many years and is beyond doubt.
Japan and the United States will establish global hegemony through astronomical margin calls.
US wants to cheat and bully, no chance, we will fight back.
It's utterly amazing that Japan being a proud country still bows to US after 2 atomic bombings and then bring them to their knees despite their economic prowess, destroy their economic development.
Well done to takauchi for bowing and kissing the ring of trump
😂😂😂what Japan? You must be saying Americans crushed the outsiders who invaded Japan prior to Pearl harbor bombing. Because they still haven't crushed real Japanese who've been out here in America. Who Represent the real Japanese! They can't beat us so they play with the police their laws and they fabricate information and pay people to lie in court on us. But, they can't beat us ever. This is after they wanna fight ,stab , kidnap and shoot people and lose that game.