What happens to financial markets if Japan has to sell it’s substantial stack of U.S. Treasury debt? From Lau Vegys at internationalman.com:
What if I told you that something bad is happening with the U.S. government’s biggest creditor on Earth—and it could have very serious implications for your portfolio?
This story caught my eye a couple of weeks ago, and I’ve been meaning to write about it but kept pushing it to the backburner because I had my plate full at the time. But it’s too important to ignore any longer.
So what’s going on?
Last month, Japan’s Cabinet Office published their latest economic figures, and they were not good. Japan’s economy shrank for the first time in a year, contracting by 0.7%.
That’s bad news, especially since it happened even before the bulk of President Trump’s tariff measures took effect. Now it’s almost a given that Japan will continue shrinking this quarter, which would put the country in a technical recession.
I realize you probably don’t spend much time thinking about Japan’s economy. Most people don’t. It’s on the other side of the world and doesn’t dominate headlines like the U.S. or China.
But Japan isn’t just any country. It’s one of the biggest creditors on Earth.
