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The Japanese Crisis No One Sees Coming: A Massive Threat to The World Economy
What’s Really Happening and How to Prepare Yourself
How did Japan , a country of just 2% of the world’s population, gain the power to potentially crash the entire global economy?
As someone who has been working in investment firms for years and investing for 20 years, I’ve analyzed countless market risks. But this situation is different. It’s not just another market correction — it’s a domino effect decades in the making.
For those short on time, here’s the butterfly effect already set in motion:
Phase 1: The Setup
Japan’s 30-year zero-rate experiment + aging crisis → Massive government debt spiral → 236% debt-to-GDP bomb
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Phase 2: The Leverage
“Carry trade” explosion: Borrow cheap yen → Buy US assets → Japan becomes #1 US foreign investor ($1.3T)
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Phase 3: The Trigger
Japan’s inflation rises → Bank of Japan forced to raise rates for the first time in decades
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Phase 4: The Domino Effect
Japanese rates spike → Carry trade implodes → Massive US treasury selloff
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Phase 5: The Meltdown
US bond yields surge → Mortgage rates explode → Housing market freezes → Consumer spending crashes → Credit defaults cascade → US markets crash → Global recession
