Japan threatens to sell $1.1T in U.S. debt—a bold move that could shake global markets.
Japan warns of the nuclear option in trade talks, threatening to use its massive $1.1 trillion US debt holdings as a weapon, an intense standoff with the president. So, what would happen if Japan actually sells off its US Treasury bonds? US bond prices would fall. And when bond prices fall, interest rates rise. That means higher borrowing costs for the US government and a ripple effect across the economy. Wall Street would feel it, too, because stock prices are tied to interest rates, which can drag the entire stock market down. It’s not a one-way street. Japan would take a hit, too. Selling US debt would push the dollar down and the yen up, hurting Japanese exports and potentially triggering a recession at home. everywhere, really. So, why even float the idea? Simple leverage. This is a highstakes game of poker against one of the worst poker players ever in our president. By threatening the nuclear option, Japan signals it’s willing to fight back against aggressive demands and just blow the whole thing up. Will they actually do it? Probably not. But the fact that it’s even on the table shows how tense the US Japan relationship has become. This isn’t just about bonds.
31 Comments
Weak lefty. Continue doing the same weak things that take advantage of our tax dollars. Something is finally being done. Let it work.
The Bankruptcy King? In his own words. Your Fired!
OOOOOOH! The collapse of the US is imminent. We'll be buying California. 🇨🇦💪😅
I find Trump a great poker player.
Go Japan 🎉
This is making the assumption that Dump understands economics……which he doesn’t. It’s like threatening a four year old to increase interest rates, they don’t understand what that means.
Japan should partner with China who also hold billions of U.S. bonds. Together they can bully USA
Dumb 😊
Japan will do fck all…its like kids planing on how to take down an expirienced grown up wrestler…as much japan got a "hook" on usa…usa would have like 10 such "hooks" over japan…i mean com on…just think
This is only just an opinion seeing how there are so many poor people in this country and there are rich people or oligarchs in this country that do not pay taxes I think Japan should dump the bonds let's see how smart Donald Trump really is he says that he can solve all the problems let's see if he can solve this one😮
Oh look… another woke Kamala/Biden supporter who feels he is more evolved and smarter because he is not afraid to talk about how his own country (the US) is weak. Rest assured though, that after WWII, the US has had Japan by the short hair economically, militarily, and diplomatically. The US even wrote their constitution! LOL! Japan would never sell that much U.S. debt as doing so would hurt Japan more than it would help. The biggest reason is that Japan depends on the US for security umbrella.
They should be forced to sell them back 😜
False your personal opinions dont mean squat
If your going to manufacture goods in America you need to crash the us dollar. What's the point of manufacturing anything if no one can afford to purchase your products?
Well you are hanging the fruits too high. Japan, China, and Europe could flood the market in a concerted effort. Moreover they could dump some trillion USD on the markets.
That would be fun.
MAGA!
Yeah, I suppose trump thought that out too
Well nothing to said
I like how you explained this so concisely
Invest in gold bullion now then you can partially shield yourself from All the crackpots running things
China also holds huge amounts of treasuries. The two countries could negotiate how to sell these treasuries so the market hasn't a clue at predicting when or how much of these treasuries are sold.
Well, maybe media should have serious economic lessons 1/2 hr everyday from the people who know so citizens should understand. Would media part of the solution for America? Like true sensible educational reporting 😂🫵
Who would buy US bonds , not safe
your a clown japan wont do sht period your selling fear
Trump has bad cards, high stakes poker from a man who has a very bad tell.
And if they sell low, the US can buy at a low price, leading to less bonds in the market, which eventually will lead to less leverage from anyone holding the bonds, then control inflation at home, which will actually allow for lower interest rates.
So Trump still wins 😂😂😂
greatest thing about America, everyone has an opinion even if their wrong 😂😂😂😂.
Remember “floating the idea” works both ways! Whether it be Japan threatening to sell U.S. bonds, Trump saying he wants to make Canada the 51st state, the Greenland issue, Tariffs, etc, etc, etc.
Will anyone actually go through with what they say? Who knows but it’s all a way of bargaining & leverage.
U wanted? U got him . But wait . It is really going downhill. U dont even know how bad america is going.
He don't care
Why? Why would japan, China, Europe, Canada and all the World FIGHT so hard against US Tariffs if they really didn’t need US Trade ??????
And your an expert? You look like you practiced reciting this actually your reading this actually true libral tactic cant get rid of the teleprompter even if its on paper