ULTIMA ORA: Il Giappone RIFIUTA la richiesta di Trump di far crollare la sua economia: l’asta di …

ULTIMA ORA: Il Giappone RIFIUTA la richiesta di Trump di far crollare la sua economia: l’asta di …

The US is drowning in debt and it wants its allies to help keep it afloat. But here’s the brutal truth. Washington doesn’t care if that means wrecking their economies in the process. This story, it’s about Japan saying no more. The Trump administration is turning up the pressure, demanding Japan sacrifice growth, raise rates, and keep buying US debt. But Tokyo’s firing back. Behind closed doors, a bold shift is brewing. one that could blow up global trade alliances and hit the US dollar where it hurts. Forget the headlines. This is the real story. Let’s break it down. And don’t forget to subscribe because what’s coming next isn’t just economic news. It’s a global power shift. Let’s break down the ultimatum. The US is in a bind. Its trade position is crumbling with a current account deficit at 3.8% of GDP, about $1 trillion a year, according to the Bureau of Economic Analysis. That means America needs foreign cash flowing in just to keep the dollar afloat. But allies like Japan are losing patience. They’re fed up with buying US Treasury bonds to bail out Washington’s bloated budgets. The US is now facing a 22 billion 30-year Treasury bond sale in 2025. And the last auction was a reality check. Domestic buyers dropped to just 14% participation, down from a six-month average of 17% per the Wall Street Journal. Worse yet, foreign central banks are pulling back. The New York Fed reports that US securities held for foreign banks have hit their lowest level since 2017. This shift, known as DDOLization, is bad news for the US economy. Foreign central banks are ditching US bonds for alternatives like gold, euros, or Chinese yuan. This isn’t just a blip. It’s a warning. The dollar’s status as the world’s reserve currency depends on global trust in US assets, but that trust is eroding. About 85% of central bank managers site US sanctions as a reason to hold fewer dollar-based assets. On top of that, the US government’s borrowing is out of control with deficits projected to balloon by over $3 trillion in the coming months. This makes investors question whether US bonds are still a safe bet. To make matters worse, the dollar’s taken a beating, losing 10 to 11% of its value in 2025, hammering foreign investors holding dollar assets. Foreign buyers hold about 30% of the US Treasury market. If they stop buying, America’s left leaning on its own citizens or the Federal Reserve to scoop up the debt. That could mean printing more money, tanking the dollar’s value, and spiking inflation, which drives up prices for everything. Higher Treasury yields would also jack up borrowing costs, squeezing the economy. A weaker dollar that makes imports pricier, hitting Americans wallets on everyday goods. This isn’t just economics. It’s a sign the US is losing global clout. Countries like China and Japan are dumping US bonds for gold, signaling a shift that could curb America’s easy borrowing and weaken its global influence. Some call it a blip. But the trend points to a long-term hit if the US doesn’t act fast. To fix this, Washington needs to rein in spending and rebuild trust with allies. Otherwise, we’re looking at a weaker dollar, higher prices, and a less dominant America on the world stage. Right now, Japanese pension funds are leading the charge, shifting cash to euro denominated infrastructure bonds. Why? US inflation expectations are soaring above the Fed’s 2% target for the next decade. And Trump’s 2025 stimulus plan is set to pile on 2.4 to 2.6 trillion to the federal deficit per the Congressional Budget Office. With US debt at 122% of GDP, buyers are drying up and the party’s running out of steam. So, what’s Washington’s move? Instead of cutting back, it’s pressuring Japan to hike interest rates to prop up the yen. The Treasury’s June 2025 exchange rate report didn’t hold back, demanding Japan tighten monetary policy to fix the trade imbalance. Basically, make Japanese exports pricier so US goods can compete. Sounds fair, right? Not so fast. Japan’s economy is on shaky ground. Quarter 1, 2025, saw GDP shrink by 0.7%, exports drop 0.6%, and household spending, over half the economy, flatline. These aren’t just numbers. They show an economy too fragile for external shocks. Toyota, Japan’s economic giant, took a $1.3 billion hit in April and May alone from Trump’s 25% tariffs on Japanese cars. Now bracing for a 20% drop in annual earnings. Over 1 trillion yen in operating income wiped out. Mazda’s in such a panic it delayed its earnings forecast entirely, blaming US trade uncertainty. This isn’t negotiation. It’s economic warfare and Japan’s catching the blows. Trump’s supporters say it’s about leveling the playing field, but to Japan, it’s a one-sided beatdown. Now, let’s talk Japan’s bond market because it’s a nightmare. At 236% debt to GDP, the highest in the developed world per the IMF, Japan’s in no position to take hits. The US is playing hard ball, but the ripple effects could tank allies and destabilize global markets. Is this a calculated move or a reckless gamble? Drop your thoughts in the comments. All right, let’s talk about Japan’s economic highwire act. The Bank of Japan, BOJ, owns a staggering 80% of its government bonds with a balance sheet now at 126% of GDP. For years, they kept interest rates near zero through yield curve control to tame this massive debt. But in 2024, they ditched that policy. By January 2025, rates hit 0.5%. Then in May, 30-year Japanese government bond yields soared to 3.15%. The highest since 1999, and 40-year yields spiked to 3.635% per Reuters. Why the surge? Markets are betting the BOJ will hike rates again, driven partly by US pressure and Japan’s planned fiscal stimulus ahead of its July 2025 upper house election. Here’s the problem. If rates keep climbing, Japan’s bond market could implode. Higher yields mean big losses on the BOJ’s massive bond holdings. With negative yield spreads already pinching its balance sheet, a sharp rate hike could spark a financial meltdown. Deutsche Bank estimates Japan would need a 20 to 25% yen appreciation to meet US trade demands. That kind of shock would hammer exporters like Toyota, already reeling from tariffs, and could send Japan’s economy into a tail spin. You might wonder why doesn’t Japan just push back? They’re trying, but it’s complicated. BOJ Governor Kazua warns that household consumption is too weak for aggressive rate hikes. Inflation’s above the BOJ’s 2% target, but it’s driven by costly essentials like fuel and food, not strong demand. A stronger yen could lower import costs, but it won’t spark consumer spending. Tightening policy now could do more harm than good. A May 2025 Reuters poll found 68% of Japanese economists urging the BOJ to hold off on rate hikes until US trade policy stabilizes. Behind closed doors, BOJ officials are even mulling a delay in bond tapering past fourth quarter 2025 to avoid market chaos. But Washington’s not listening. Treasury Secretary Scott Bessant, Commerce Secretary Howard Lutnik, and US Trade Representative Jameson Greer can’t even agree among themselves. Bloomberg reports that talks with Japan stalled after US internal disputes derailed negotiations. Japanese officials are frustrated, saying it’s impossible to respond when the US keeps shifting its stance. This back and forth is eroding trust and forcing Japan to rethink its role as a loyal US ally. Here’s where it gets wild. Japan’s not just taking hits, it’s planning a counter strike. Instead of caving to US pressure, Tokyo’s doubling down on the comprehensive and progressive agreement for Trans-Pacific Partnership CPTP, a 12country trade block Japan helped salvage after the US bailed on the original TPP in 2017. In Q12025, Japan’s exports to CPTP nations surged, especially to the Middle East with a 17% jump. Japan’s also inked new trade deals with the UAE to cut reliance on the US. With car shipments to Mexico and Canada leading the charge, Japan’s not just talking tough, they’re waving a massive red flag, threatening to dump their $1.1 trillion stash of US Treasury bonds if the US doesn’t ease up. Japan’s finance minister, Katsunobuk, initially played it cool, saying they wouldn’t weaponize their holdings. But by May 2025, he dropped a bombshell. Those bonds are now a bargaining chip. Translation: Japan’s ready to play hard ball. If they start selling, US interest rates could skyrocket, the dollar could tank, and Wall Street might spiral into chaos. Remember the Treasury sell-off scare in April 2025? This could make that look like a warm-up. Kato later softened his stance, saying there’s no plan to sell yet, but the message is clear. Japan’s done playing nice. Prime Minister Shagaru Oshiba calls this a fight for national interests. With an election looming on July 20th, 2025, he’s under pressure to prove Japan won’t be pushed around. They’re demanding the US scrap tariffs, especially on cars, the backbone of Japan’s economy. Negotiators like Rio Akazawa have offered deals on agriculture and natural gas. But Trump’s team isn’t budging. It’s a full-on standoff. Japan’s waking up to a harsh reality. The US isn’t their reliable ally anymore. It’s Japan first now. So, how’s Japan fighting back? The Bank of Japan is keeping interest rates ultra low to soften the blow from a weakening yen battered by tariffs. They’ve intervened in currency markets before in 2022 and 2024 to prop up the yen. And they’re ready to do it again. Japan’s also boosting investments in the US to maintain some goodwill. But let’s be real, this is about survival. They’re not just sitting back now. The bigger picture. Trump’s wrecking ball tariffs are torching a decadesl long alliance that’s kept both nations strong. Japan’s America’s biggest foreign investor and a key Pacific partner, especially against China’s rise. But Trump’s America first obsession is forcing Japan to rethink everything. Posts on X show growing Japanese frustration with some saying it’s time to cut ties and go solo. If Japan dumps treasuries, it’s not just their problem. It’s a nightmare for the US economy. Trump’s burning bridges that’ll take years to rebuild. Japan isn’t just another trading partner. It’s a pillar of global stability. By picking this fight, Trump’s pushing Japan to prioritize itself, and they’ve got the financial muscle to do it. If Japan makes the next move, the global economy could shift overnight. What’s your take? Will Japan pull the trigger, or will Trump back off? Drop your thoughts in the comments.

Japan REJECTS Trump’s Demand—$22B Bond Auction COLLAPSES!
Japan just delivered a major financial shock. After refusing Trump’s demand to raise interest rates and weaken its economy, Japan has triggered the collapse of a $22 billion U.S. Treasury bond auction—sending Wall Street into panic mode.

In this video, we break down:
💣 Why Japan rejected U.S. pressure to crash its economy
📉 The shocking failure of the $22B bond auction
🇯🇵 How Shigeru Ishiba is defending Japan’s national interests
💥 Japan’s $1.1 trillion threat to dump U.S. debt
📊 What this means for the U.S. dollar, inflation, and global markets
🌐 Japan’s pivot to CPTPP and new trade alliances beyond the U.S.

This isn’t just a bond market issue—it’s the start of a global financial power shift. The U.S.-Japan alliance is cracking, and the dollar’s dominance may be next.

🔔 Subscribe now for more breaking updates on global trade, bond markets, and geopolitical power moves.

#Japan #Trump #BondAuction #USDebt #ShigeruIshiba #FinanceNews #GlobalEconomy #Geopolitics #CPTPP #DollarCrisis #USJapanTensions

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