🚨 JAPAN JUST PULLED THE PIN — GLOBAL MARKETS HAVE 48 HOURS

Japan is about to do what most people thought was impossible.

Today, the Bank of Japan hikes rates again — pushing government bond yields into territory the modern financial system has never had to digest.

This isn’t a Japan story.

This is a GLOBAL STRESS TEST.

For decades, Japan survived on near-zero rates.

That was the system’s life support.

Now it’s gone… and the math turns brutal.

🔥 Why this breaks things FAST

Japan sits on ~$10 TRILLION in debt — growing daily.

Higher yields =
→ Debt servicing costs explode
→ Interest eats government revenue
→ Fiscal flexibility dies

No modern economy escapes this cleanly:
→ Default
→ Restructuring
→ Or inflation

And Japan never breaks alone.

🌍 The hidden global shockwave

Japan holds trillions in foreign assets:

• Over $1T in U.S. Treasuries
• Hundreds of billions in global stocks & bonds

Those holdings only made sense when Japanese yields paid nothing.

Now? Domestic bonds finally offer real returns.

After currency hedging… U.S. Treasuries lose money for Japanese investors.

That’s not panic.

That’s ARITHMETIC.

So capital comes home.

Even a few hundred billion repatriating isn’t “orderly”…

It’s a LIQUIDITY VACUUM.

💣 The real detonator: the yen carry trade

Over $1 TRILLION borrowed cheaply in yen and deployed into:
→ Stocks
→ Crypto
→ Emerging markets

As Japanese rates rise and the yen strengthens:
→ Carry trades unwind
→ Margin calls hit
→ Forced selling starts
→ Correlations go to ONE

Everything sells.

Together.

⚠️ And it gets worse…

→ U.S.–Japan yield spreads are tightening
→ Japan has less reason to fund U.S. deficits
→ U.S. borrowing costs rise

And the BoJ may not be done.

Another hike?
→ Yen spikes
→ Carry trade detonates harder
→ Risk assets feel it instantly

Japan can’t just print anymore.

Inflation is already elevated:
Print → Yen weakens → Imports surge → Domestic pressure explodes

$ENSO $SCRT $SENT