Скачать или смотреть “Japan just triggered a global debt warning — and markets are panicking.| World Affairs Explained

#GlobalDebt, #Japan, #geopolitics
Global markets are waking up to a reality they ignored for decades: Japan—the world’s most indebted advanced economy—may no longer be able to defy financial gravity. With debt levels exceeding 230% of GDP, Japan was long seen as an anomaly outside normal economic rules. But that illusion is collapsing fast.

Just weeks into her tenure, Prime Minister Sanae Takaichi shocked global investors with a $135 billion stimulus package filled with political giveaways—rice vouchers, fossil-fuel subsidies, and cash handouts that do nothing to fix Japan’s structural weaknesses. The market’s reaction? Violent. Japanese 10-year yields surged to 1.94%, flirting with levels not seen since 1997 and triggering fears of a Liz Truss–style meltdown.

Economists warn that if Tokyo won’t reverse course—and it probably won’t—Japan risks a cascade of bond sell-offs, a collapsing yen, and a full-blown fiscal crisis. And this time, the consequences won’t stay contained. Japan is one of the biggest buyers of U.S. Treasuries, meaning America could also feel the shockwaves as Washington tries to finance its growing deficits.

The yen—once the world’s safe-haven currency—is now trading like an emerging-market currency, hovering near ¥155 to the dollar. Meanwhile, Japan has abandoned its target for a primary budget surplus, just as inflation and rising interest rates push debt-servicing costs toward levels unseen in modern history. The IMF expects Japan’s interest payments to double by 2030 and quadruple by 2036.

But this is bigger than Japan. We are entering a new global era where high debt collides with high interest rates. The U.S., China, Europe, and Japan together now carry the majority of the world’s sovereign debt—while global debt has exploded to $337 trillion. More than 3.3 billion people now live in countries spending more on interest than on health or education.

Japan may still have powerful tools—deep financial markets, large external assets, and a central bank willing to intervene. But the era of Japanese “exceptionalism” is ending. A misstep here won’t stay local… it could trigger global contagion.

The margin for error is gone.
A global debt crisis is no longer a future threat—it’s happening now. And Japan may be the first major test.

📌 Chapters:
0:00 Japan’s financial illusion breaks
1:15 The $135B shock stimulus
2:30 Bond market panic
4:00 Risks to the U.S. and global markets
5:10 Yen acting like an emerging-market currency
6:30 Rising interest costs and IMF warnings
7:45 Global debt crisis context
9:00 Why Japan may trigger global contagion

#Japan #BOJ #BondMarket #GlobalEconomy #USTreasuries #FederalReserve #InterestRates #KazuoUeda #USDollar #Yen #CryptoCrash #StockMarketToday #EconomicNews #FinanceExplained #MacroEconomics #Investing #RecessionRisk #MarketUpdate #GlobalMarkets #CentralBanks