Government issues bonds to borrow money, pays a yearly amount to borrower known as a yieldFor long term bonds : IF Market suspects inflation, money becomes less valuable, borrowers demand higher yields to compensate for money/currency losing value over timeFor example, increasing interest rates is like a vacuum cleaner. Sucks up excess money/currency, making it more valuable, thereby reducing inflation. Increasing interest rates reduces inflation reduces bond yields.Vice versa, lower interest rates -> more money flowing -> increases inflation -> increases bond yields.HOWEVERThe opposite can happen too. IF you raise interest rates -> less money flowing -> less money to go around -> less people buying bonds -> bond demand lower -> government has to raise bond yields to incentive people to buy them.IF Market suspects economic problems, they start buying bonds which are considered safe investments, due to higher demand government can pay lower yield because they don't need to incentivize people with higher yield payoutsGovernment issues bonds to borrow money to pay back debt, using debt to pay for debt, yield/interest on debt payments can become unsustainableUS 30Y Treasury yield hits 5.27%, its highest level since 2007Japan 30 Year Bond Yield rose to 3.98% on July 31, 2026Why does this matter? Because Japan for decades has had low bond yields, so they would borrow cheap money at low interest rates, and invest it overseas (US e.g.) for higher return, higher yields (in fact this has a special name Japanese carry trade)Now Japan is investing that money back home instead of US, less money invested, slower economy. Bank of Japan doing a balancing act now with interest rates trying to increase them to make the currency Yen worth more but also stabilize bond market because Japan has a huge amount of debt, and higher bond yields make borrowing money more expensive.Also US bonds are increasing because people are worried about inflation.
money is such a gay nigger joke
>>540079287Good post. But you should read this guys substack. Japan is going to bust if they basically don't cash in their foreign holdings and pay down their disgusting amounts of debt.
>>540079287>japanyeah, this doesn't affect us. japan is on the other side of the planet and our economy is doing better than it ever has in history.
>>540079703It's a silly idea. Japan going bust is America going bust. Ergo, America will pay.Or, America loses what they have in the region
>>540080065yeah, that was a weird way to say you have no idea how financial markets, let alone the modern monetary system, works but okay.
>>540080325Sure. You can make your bets as per usual and I will make mine.Unless you are just a substack consooomer who doesn't even play.
>>540080412k, you do you.
>>540079439based commie
Broader point is, the global bond aka debt market is on brink of collapse and has been for four years running; more unstable and volatile than in half a century. UST is the worldwide default reserve denomination.
>>540079439debnts status?
Give it to me straight; is Japan actually fucked?Is the yen gonna become Zimbabwe-tier?
>>540080974From this? No. From future issues? More possible but I'd still say unlikely as they are poooliticaly adjusting to the situations (slower than anyone would like but faster than most everyone else.)There is a lot of dependency going the other way so any situation currently that 'looks bad' will be bailed out by dependents.
>>540081129For another example, although it's 'touchy': See life in Russia post-sanctions/currently.Or if you want, look at past crises in Japan to see what it looked like. Japan is not Zimbabwe for various reasons. In game terms, they can turtle just fine for a long time.
>>540080974 If the yen goes Zimbabwe tier, maybe they will actually begin to fuck like Zimbabwe. Japan going poor is a salvation; they're as aged as they are now because they are rich.
Thanks Sanae
Ignore the bot replies. If you want to actually discuss anything coherently - be it geopolitics, history, finance, conspiracy theories, metaphysics, the answer is getting 5-15 active people in an invite only chat isolating yourself from the group-thinking horde. Everything is upside down, if you want to have civil discourse you need to isolate yourself while every jingoist crazies loitering on the openweb and it's only going to get worse. Complaining doesn't work. Consider joining https://simplex.chat/contact/#/?v=2-7&smp=smp%3A%2F%2FLDnWZVlAUInmjmdpQQoIo6FUinRXGe0q3zi5okXDE4s%3D%40smp2.simplexonflux.com%2FCIVhXUGWZHG4pnXx3pEESitxlqerHxD8%23%2F%3Fv%3D1-4%26dh%3DMCowBQYDK2VuAyEAod4QRCupJN8e1Nh8s2pd3ub03RH44sC36QV6X3fYb3s%253D%26q%3Dc%26srv%3Dyiqtuh3q4x7hgovkomafsod52wvfjucdljqbbipg5sdssnklgongxbqd.onion&data=%7B%22groupLinkId%22%3A%2211Gn69wT4Y4vcwSIaVpBNw%3D%3D%22%7D Discord & Telegram are namefag, SX doens't require your phone number and no user identifier. Any namefags forums eventually fails out. No one really exchange convo on Twitter. It's not about the numbers. It's the sense of censorship present all the time. People are afraid to say slightly wrong things. How do you learn things without being wrong first? Everything is sanitized for Ai training. Sense of discovery gone. Raw human engagement gone. You are not observing, you are being observed. If you feel like chans are the only place left this axiom applies - strong minds discuss ideas, average minds discuss events, weak minds discuss people, then we're stuck. All chans suffer from low user count. Only generals on /poI/ go over 300 replies and they're like chat rooms for circlejerk minus it's on the open web. Chat is a a downgrade and not telling you to leave chan but I can't think of better options atm. I don't want to clog up IRC with /pol/ things There's no systematic, programmable solution, it's the people using the internet who r at fault here https://archive.4plebs.org/pol/thread/539447099/#539457056
[IN JUST ONE YEAR]Microsoft announced new investment in Japan data centerGoogle announced new investment in Japan data centerAmazon announced new investment in Japan data centerOracle announced new investment in Japan data centerBroadcom announced new partnership with NTTGE announced new reactor with HitachiTesla announced new investment in JapanJoby announced new eVTOL production with ToyotaZoox announced new battery deal with PanasonicQuantumScape announced new partnership with HondaAnduril announced new drone factory in JapanPalantir announced new partnership with FujitsuLockheed announced new radar production with FujitsuRTX announced new patriot production with MitsubishiNorthrop announced new interceptor production with MitsubishiBoeing announced new technology center in JapanIBM announced new investment in RapidusTenstorrent announced new chip design center in JapanMicron announced new investment in Japanese fabsIntel announced ZAM memory with JapanNvidia announced Storage-Next™ with KioxiaSanDisk announced new investment in KioxiaWestern Digital announced new investment in Japanese suppliersLumentum announced new investment in Japanese factoryWarren Buffett announced new investment in Sogo Shosha[non-US](TW) TSMC announced new 3nm fab in Japan(TW) UMC announced new fab in Japan(IL) Tower Semiconductor announced new investment in Japanese fabs(FR) Air Liquide announced new gas factory in Japan(BE) imec announced new partnership with Rapidus(DK) Vestas announced new wind turbine factory in Japan(PT) Tekever announced new drone factory in Japan(NL) Airbus announced anti-submarine drone with Japan(DE) Rheinmetall announced new military equipment factory in Japan(DE) DLR announced new reusable rocket with JAXA/Mitsubishi(GB) BAE Systems announced 6th gen stealth fighter with Mitsubishi(AU) Lynas Rare Earths announced new supply deal with Japan
>>540083379And yet her approval rating cratered because, surprise surprise, she was an immigration-loving leftist in right-wing clothing.
>>540079439roflpay debt
>>540079287All of which is usury.This is why Congress has sole constitutional authority to coin money.
>>540080831>>540083663>debnts statusEntire global economy is founded on and lifeblood-supplied by Debt.It's a global debt-based economic model.tl/dr That is why the stability integrity and *confidence in* global debt market, is of paramount importance.
>>540079287I see this wemb and i constantly break nofapnaked women, seductive dancing even porn popups dont do that for meBut Ana doing merchant like this is my kryptonite
>>540083379All of those are due to weak yen making Japan a cheap labor hub. You are becoming a 3rd world sweat shop for the west.If you look at the list, they are all foreign companies setting up factories and datacenters in Japan to use the cheap labor in Japan but the profits ultimately goes out of Japan.You really need to pay down your debt and strengthen the yen and get out from under stagnation for once.
>>540079287>IF Market suspects inflation, money becomes less valuable, borrowers demand higher yields to compensate for money/currency losing value over timeBut that's not necessarily the only cause. Interest rates can also go up when there is a shortage of either cash or willing investors. If the market as a whole had $10 million in bonds it was looking to sell, but only $1 million worth of investors showed up, the bond sellers would have to compete; and paying a higher interest rate is the only way they have of competing.
