Japan Lit the FUSE — The Yen Carry Trade Unwind Will Crash the US Economy

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For decades, Japan quietly fueled global risk-taking. Ultra-low interest rates turned the yen into the world’s cheapest funding currency, powering the massive yen carry trade that propped up stocks, bonds, emerging markets, and even crypto. That era may have just ended.

This week, the Bank of Japan raised interest rates to 0.75% — the highest level in 30 years. The number looks small, but markets don’t trade on levels. They trade on direction. And the direction has just flipped.

In this video, we break down:
- Why the yen carry trade matters more than most investors realize
- How a stronger yen can trigger a global deleveraging event
- Why U.S. equities, Treasuries, and emerging markets are vulnerable
- How Japan’s massive holdings of U.S. debt could amplify contagion
- Why strategists now see Japan as a bigger systemic risk than the Fed

With hundreds of billions — possibly trillions — still tied to yen-funded leverage, even a gradual unwind could send shockwaves through global markets. Emerging market currencies are already wobbling. Bond yields are rising. Capital may be heading home to Japan.

This isn’t about panic. It’s about understanding a regime shift that Wall Street is only beginning to price in

Watch to understand what just changed — and what comes next.

#geopolitics #globaleconomy #Japan #BOJ #YenCarryTrade #GlobalMarkets #USStocks #FederalReserve #Finance #Macro #MarketCrash #Economy