Japan's economy is now breaking from three directions at once.
The Bank of Japan is running the most aggressive tightening in its history, and this is a central bank that has spent 25 years doing the exact opposite.
• The BOJ drained ¥23.5 trillion, about $146 billion, from the market in the quarter ending June 30. That is the largest quarterly drop of this entire QT cycle.
• Since its 2024 peak, the BOJ has shed ¥116.9 trillion, roughly $726 billion, or 15.6% of its total assets.
• It is now selling its equity ETFs and J-REITs outright. Nothing on the balance sheet is protected anymore.
The bond market is already showing the damage.
• The 10-year JGB yield hit 2.90%, the highest since September 1996. That is a 30-year high.
• It rose for nine straight sessions, the longest streak in 19 years.
• The 20-year is at 3.89%, the 30-year at 4.03%, and the 40-year at 4.055%. Both long ends are at record levels.
Inflation is now forcing the BOJ's hand.
• Japan's PPI just came in at 7.1% year over year, above the 6.8% forecast and up from 6.3%.
• The policy rate is still only 1.0%, far behind where inflation sits.
• Higher inflation means more rate hikes. More rate hikes means even less liquidity in a market that is already being drained.
That is the first problem. The second is the currency.
The BOJ has attempted small interventions over the last few days and none of them held. USD/JPY is still sitting near 162, close to a 40-year low for the yen. Japan already spent $72 to $73 billion defending it earlier this year and it did not work.
A weak yen is not a small problem. Japanese companies are going bankrupt because import costs keep rising. To actually strengthen the yen, Japan has to drain foreign reserves and hike rates harder.
Doing that risks breaking its own stock market, and something much bigger.
The yen carry trade is still estimated at $4 to $8 trillion. That money is borrowed cheaply in yen and parked in US stocks, emerging market debt, and crypto. In August 2024, a single 0.15% BOJ hike triggered an unwind that crashed the Nikkei 12.4% in one session, its worst day since 1987.
Then there is the third problem, and this one has no policy fix.
• Japan recorded 671,236 births in 2025, the lowest since records began in 1899.
• The fertility rate fell to 1.14, far below the 2.1 needed to hold a population steady.
• Deaths exceeded births by over 900,000 people for the second year in a row.
• Population has fallen from 128 million to around 123 million.
• Nearly 29% of the country is now over 65.
Debt is rising. The workforce that has to service that debt is disappearing.
Japan has the highest debt-to-GDP ratio in the world at 204.4%. Its central bank is draining liquidity, its bond yields are at 30-year highs, its currency is collapsing, and its future taxpayers are not being born.
Most people are watching the Fed. The next global shock is far more likely to start in Tokyo.
BREAKING: FDNY is putting out multiple FIRES on the BROOKLYN BRIDGE as more continue to explode along the span.
Video by Dakota Santiago
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Jack Smith: I'll give you an example from from my life. I resigned as special counsel. I know I need to get a lawyer because the president has said he wants to jail me for doing my job. And so I retain lawyers, as soon as that becomes public, the president and the justice department target that law firm, and they do it because they don't want me to have counsel. They don't want to have anyone represent me…
They didn't reclassify, but they did do this, and that is huge. A giant step towards The Hague!
United Nations human rights experts have not "reclassified" documents, but instead declared that the allegations within the Epstein files may meet the legal threshold for crimes against humanity. The panel issued the statement following the release of millions of unsealed records by the US Department of Justice . [1, 2, 3]
The independent experts, appointed by the UN Human Rights Council , stated the following:
Legal Threshold: The widespread sexual abuse and transnational trafficking of young women and girls may amount to "crimes against humanity" rather than isolated criminal offenses .
Global Enterprise: The documents reveal a possible global criminal enterprise characterized by systematic exploitation, sexual slavery, and torture operating across multiple borders .
Systemic Failures: The panel condemned a "culture of impunity" that allows powerful figures to evade accountability, demanding independent, transparent investigations regardless of a suspect's status.
Criticism of Disclosures: The experts criticized the incomplete releases and botched redactions in the US DOJ files, warning that the handling of the documents has exposed sensitive victim identities and retraumatized survivors . [6]
Further Exploration: UN Statements on the Epstein Files
Read the official press release from the Office of the UN High Commissioner for Human Rights .
View the original panel statement on the UN News portal.
Watch the coverage of the UN Human Rights chief's remarks on UN News.
AI can make mistakes, so double-check responses
[1] https://t.co/OHoieTpi8X
[2] https://t.co/Jn6oMnnrXT
[3] https://t.co/zadLLBdZXU
[4] https://t.co/pST4k6CIlv
[5] https://t.co/DtEfMeMsR1
[6] https://t.co/rA302jfyJ9
The 1/6 Committee couldn’t get Trump’s personal phone logs, but the BBC is demanding them as part of discovery in Trump’s defamation lawsuit against the broadcaster.
https://t.co/4j9jKBe5z1
Dear Joe,
I wish I could sit down with you face to face and explain why so many of us were offended by the UFC fight on the South Lawn of the White House.
For me, it had nothing to do with the UFC or who showed up for the fights. The brand you and Dana have built is a bona fide American success story. More power to you. As for the fighters, in my book, anyone brave enough to put it all on the line in the arena is remarkable to witness. Their dedication and discipline inspire me. I don’t understand anyone who can’t admire that.
And as for the people who attended, I, for one, love Shane Gillis. I think he’s hilarious and brilliant. It was a show. A once-in-a-lifetime spectacle. I can’t blame anyone for wanting to witness it firsthand.
My problem is that I believe some of our public spaces are sacred. And unlike many of the great powers that came before us, these American monuments belong to all of us. Not to whoever happens to hold power at the moment.
The White House does not belong to Donald Trump. It does not belong to any President. It belongs to the people. To treat it as Caesar treated the Colosseum is antithetical to everything our founding fathers fought for.
This is not Rome. Presidents are not emperors doling out bread and circuses for the peasants. The White House is the People’s House. This “celebration” could have happened in any stadium within a stone’s throw of the South Lawn. No one would have had an issue with it.
But that was obviously Donald Trump’s whole point. By holding the event on the South Lawn, what he was saying to the rest of us is:
“This is my house. I own it. I will do with it what I please. I’ll build a colosseum and have the gladiators fight under my gaze. I’ll tear down the East Wing. I’ll pave over the Rose Garden. I’ll cover everything in gold and marble. I’ll erase the names of all the men who came before me.”
The fights were an exhibition of imperial domination, not a celebration of our 250th anniversary as a democracy.
The White House is not Buckingham Palace. It is not the Palace of Versailles. It is not the Forbidden City of Beijing. It does not belong to an emperor, or a king, or a commissar.
The White House belongs to us. All of us. The person who sits behind the Resolute Desk in the Oval Office is nothing more than an honored guest. A temporary caretaker.
The President is our servant. Not our Caesar.
Respectfully, Hunter
P.S. Cage match between me and Don Jr.? Your call on the venue. Anywhere but the South Lawn.
@KyleLascoShow Thomas Massie is the best. I love that guy and probably disagree with at least half of his political positions. But he has so much integrity. And I know he loves this country.
Data centers are asking just too much for too little in return.
I'm pausing the release of any new data center tax incentives in Illinois — and I'm calling on the General Assembly to act in veto session to make sure data centers are paying their fair share.
So let me get this straight.
Jake Tapper is focused on attacking my Mom.
Jared and Ivanka are building a private island paradise on Albanian protected land.
Don Jr married the daughter of Epstein’s banker, and a startup his fund backs just got a record $620M Pentagon loan.
Eric is taking an Israeli drone company public for $1.5B in the middle of a war with Iran that nobody wanted.
And I know: “But what about your paintings, Hunter?”
Please.
And just like that, it’s completely VANISHED from the media.
A sitting congressman, Ted Lieu, said on the record the Epstein files are being blocked because they show Trump raped and threatened to kill children.
Lets make this viral again 👇
Kevin Warsh starts his tenure with his credibility in tatters.
He's proven himself to be Donald Trump's sock puppet.
And he refuses to answer who cut him a $100 million check for his secret investments – and what they may want from him as the new Fed Chair.
Scott MacFarlane reports that Democracy Forward has formally demanded the Trump administration preserve all records related to Trump’s $10 billion lawsuit against his own IRS.
That lawsuit was abruptly dismissed before a federal judge could determine whether it was a collusive attempt to use the courts to bless a taxpayer-funded payout.
Democracy Forward CEO Skye Perryman says the newly created fund is “completely unlawful” and that legal action is coming.
As Perryman put it: “Preserve your documents, because we’re going to see you in court.”
DEVELOPING: DOJ is investigating $2.6B in suspiciously timed oil trades made right before Trump's Iran decisions. The corruption is finally catching up to them.
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