Sam DarknessRises @SDarknessrises - Twitter Profile

THE GLOBAL FINANCIAL SYSTEM JUST BROKE IN TOKYO Japan’s 30-year bond yield hit 3.41% today. That number means nothing to you. Here’s why it should terrify you. Japan owes 230% of everything it produces. It’s the most indebted nation in human history. For 35 years, they kept the lights on by borrowing at near-zero rates. That era ended this morning. Here’s What Just Happened Core inflation is running at 3.0%. Government bond yields are spiking to levels not seen since 1999. China just conducted its 25th military incursion near Japanese waters this year. Japan is now forced to spend 2% of GDP on defense … nearly 9 trillion yen annually. The Bank of Japan is trapped between two impossible choices: raise rates and trigger a debt collapse, or keep rates low and watch inflation destroy savings. They chose door number two. Why You Should Care Every major bank, hedge fund, and institution on Earth has borrowed yen at cheap rates and invested it elsewhere for 30 years. This “carry trade” could be worth anywhere from $350 billion to $4 trillion. Nobody knows the real number because it’s hidden in derivatives. When Japan’s system breaks, this money unwinds. Fast. The last time we saw a preview … July 2024 … the Nikkei dropped 12.4% in a single day. The Nasdaq fell 13%. That was a small tremor. The earthquake is coming. The Math Is Simple! Japan’s government pays interest on $9 trillion in debt. Every 0.5% increase in rates costs them $45 billion annually. At current yields, debt service will consume 10% of all tax revenue. That’s the death spiral threshold. The yen is trading at 157 to the dollar. If it strengthens to 152, the entire carry trade becomes unprofitable. Unwinding begins. Emerging market currencies could drop 10-15%. The Nasdaq could fall 12-20% as funds are forced to sell. What Happens Next December 18-19, the Bank of Japan meets. Markets are pricing 51% odds they raise rates another 0.25%. If they do, volatility explodes. If they don’t, inflation accelerates and the problem gets worse. There is no way out. Japan’s fiscal dominance is now permanent. They must keep the yen weak to service their debt. This means the free money that powered global markets since 1990 is ending. The Bottom Line Interest rates worldwide are going up 0.5-1.0% permanently. Not because of inflation. Because the world’s largest creditor nation can no longer subsidize global growth. Your mortgage, your car loan, your credit card … all repricing higher. Stock valuations built on cheap money … all compressing. The everything bubble … all deflating. This is not a recession. This is a regime change. The largest liquidity engine in financial history just seized up, and most people won’t understand what happened until their portfolios are down 30%. Tokyo broke the world today. You’ll feel it tomorrow. Read the full data driven deep dive article - https://t.co/enhJeYNeo1

shanaka86's tweet photo. THE GLOBAL FINANCIAL SYSTEM JUST BROKE IN TOKYO

Japan’s 30-year bond yield hit 3.41% today. That number means nothing to you. Here’s why it should terrify you.

Japan owes 230% of everything it produces. It’s the most indebted nation in human history. For 35 years, they kept the lights on by borrowing at near-zero rates. That era ended this morning.

Here’s What Just Happened

Core inflation is running at 3.0%. Government bond yields are spiking to levels not seen since 1999. China just conducted its 25th military incursion near Japanese waters this year. Japan is now forced to spend 2% of GDP on defense … nearly 9 trillion yen annually.

The Bank of Japan is trapped between two impossible choices: raise rates and trigger a debt collapse, or keep rates low and watch inflation destroy savings. They chose door number two.

Why You Should Care

Every major bank, hedge fund, and institution on Earth has borrowed yen at cheap rates and invested it elsewhere for 30 years. This “carry trade” could be worth anywhere from $350 billion to $4 trillion. Nobody knows the real number because it’s hidden in derivatives.

When Japan’s system breaks, this money unwinds. Fast.

The last time we saw a preview … July 2024 … the Nikkei dropped 12.4% in a single day. The Nasdaq fell 13%. That was a small tremor. The earthquake is coming.

The Math Is Simple!

Japan’s government pays interest on $9 trillion in debt. Every 0.5% increase in rates costs them $45 billion annually. At current yields, debt service will consume 10% of all tax revenue. That’s the death spiral threshold.

The yen is trading at 157 to the dollar. If it strengthens to 152, the entire carry trade becomes unprofitable. Unwinding begins. Emerging market currencies could drop 10-15%. The Nasdaq could fall 12-20% as funds are forced to sell.

What Happens Next

December 18-19, the Bank of Japan meets. Markets are pricing 51% odds they raise rates another 0.25%. If they do, volatility explodes. If they don’t, inflation accelerates and the problem gets worse.

There is no way out. Japan’s fiscal dominance is now permanent. They must keep the yen weak to service their debt. This means the free money that powered global markets since 1990 is ending.

The Bottom Line

Interest rates worldwide are going up 0.5-1.0% permanently. Not because of inflation. Because the world’s largest creditor nation can no longer subsidize global growth.

Your mortgage, your car loan, your credit card … all repricing higher. Stock valuations built on cheap money … all compressing. The everything bubble … all deflating.

This is not a recession. This is a regime change. The largest liquidity engine in financial history just seized up, and most people won’t understand what happened until their portfolios are down 30%.

Tokyo broke the world today. You’ll feel it tomorrow.

Read the full data driven deep dive article -

https://t.co/enhJeYNeo1

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Sam DarknessRises @SDarknessrises

9 months ago

@theartofcrypto isnt it more risky to enter trade before NY session starts for this particular set up you gave, as it seems London just setting a trap for bulls and bears, and NY can also sweap our SL if we go short now with sl above 84700. dont we better wait for NY to show us the way?

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SDarknessrises retweeted

Rick Armstrongs executor 📎

@RickArmstrong11

about 1 year ago

@BowesChay And arrest, imprison, and beat to death an American journalist, Gonzalo Lira, who laid out how Zelensky was manufactured and funded by Israeli Jewish billionaire Kolomoisky. Not long after this broadcast he was taken.

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Massimo

@Rainmaker1973

about 1 year ago

How long you need to walk to burn these 8 popular foods [🎞️ thebrainmaze]

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Sam DarknessRises @SDarknessrises

about 1 year ago

@thetimesoca @grok what import export products and services between USA and Uzbekistan could have tariffs increse

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Sam DarknessRises @SDarknessrises

about 1 year ago

@Barchart @grok what triggered such a price hike

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Sam DarknessRises @SDarknessrises

about 1 year ago

@grok @ReutersBiz @grok what are the reasons of china's bad loans

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Sam DarknessRises @SDarknessrises

about 1 year ago

@Currentreport1 Yeah, what a crook policy, don't buy from Russia but buy from us or we increase taxes . At the end of the day, it's blackmailing which will hurt only consumers in us. Orange man frantically trying to raise cash by absolute confrontational actions

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