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Nobody Wants To Admit Why America Just Bailed Out Japan



Nobody Wants To Admit Why America Just Bailed Out Japan

With U.S. 30-year borrowing costs hitting their highest level since 2007, the Treasury just asked the Federal Reserve to expand an emergency credit line days after buying yen.

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The rate America pays to borrow for 30-years is at its highest level in 19-years, while the country that lends America more money than anyone else has already shown it will sell.

If the largest holder of American debt has to sell it to survive, what happens to the price of everything else in that market?

In this video, I’ll break down:
• What actually happens when the country that lends America the most money decides it needs to start selling
• Why a currency collapsing on the other side of the world ends up in the rate America pays to borrow
• Why Japan cannot just raise interest rates to fix their economy
• What the largest rescue attempt in a country’s history actually bought
• The emergency system the United States is publicly asking to make bigger, for something that has not happened yet

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All illustrations, visuals, and animations in this video are original and hand-drawn by a freelance artist.

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34 Comments

  1. @CasuallyFinance on

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  2. @alesh2275 on

    Nonsense: this analysis would be valid for a Eurozone country but superficial when applied to Japan. Japan could raise its interest rates and the domestic impact would be minimal.

    However, the international impact would be substantial: re-shoring of Japanese capital that has been loaned to the rest of the world, Japan being the biggest creditor nation. Doing so would tank the USD (and the EUR), so Bessent helping to defend the JPY at ¥160/$ makes perfect selfish sense for the US because the US wouldn’t want such a massive capital flight out of the US and into Japan just months going into the US midterms.

    These kinds of analyses is what you get when you have people who don’t understand Japan make commentary on Japan, applying rules and dynamics that are more appropriate for other currency zones.

  7. @Worldofweez on

    This admin has the worst opsec of all time theyve been thwarted multiple times by the insanely high tech solution of an average zoom lens. Must be maddening to anyone whos actually spent their career in public service.

  12. @hb7of9 on

    Great vid:

    Japan owns a ton of USA debt.
    To stabilize their currency they wanted to sell that debt.
    But selling US debt will cause further rates issues in the USA because ya'll have way too much debt and are not trustworthy anymore.

    So the US had to "help out" to prevent their own markets from crashing.

  16. @therealslimshadytombrady on

    Eh, why not? Forgive us our debt as we forgive our debtors. It's all just government money. What if nobody even wants to collect on it, because that means the world gets blown up? Just switch the debits with the credits. People are too stupid to know the difference between debit McDonald's and credit McDonald's. They'll eat their Happy Meal anyway.

    We help each other out. Maybe not Russia, who bombs children's hospitals, but China? Sure… Why not help them out? They bailed us out in places too.

    The world is not a scary Alex Jones place. It's about cooperation. Complicated, tense, sometimes bloody, cooperation. You really have to want to kill to be able to kill in today's world, unless you're in the Middle East, and then it's basically your religion. Our objectives in the West are very basic. No crazy guy named Achmed pressing a red button on us. China, we can live with, because there's government, like we have. It goes no further than Iran.

    If it goes further, I'm orchestrating a complete revolution in my country called voting in 2028. We don't need to be there once the objective is completed.

  21. @shinyamada488 on

    Quick, buy tons of yen and invest it into another currency. So the yen's purchasing power can weaken.

    I want $0.10 Pocari Sweat

  27. @cmbaz1140 on

    leverage to get the censorship happen.
    japan has recently made the decision to censor anime and manga after the bailout.

  31. @desketler on

    Is the similarity between the Yen level now and in 1986 relevant to the 1985 Plaza Accord and its aftermath, notably the 1987 Stock Market Crash?

  33. @RITAMDEY-e2o on

    40 year low yen collapse or 40 year high US being ridiculously expensive with high income inequality . What should the thumbnail be??