The shock of 4.18% in Japan brings the dollar to an end and the collapse of technological colossae
Important warning Gold Switzerland for an imminent global economic crash, as well as the unprecedented ejection The Japanese bonds It marks the end of the monetary system as we knew it.
The collapse The Market The Tokyo works as the «canary at the coal mine», heralding a «Black Monday» which threatens to lure the Wall Street, the dollar and savings of millions of citizens.
Years teach things. In all areas of our lives, we gradually gain visual and perceptions gained through experience, and not from the theory, and more over time, rather than speculation.
The same applies to lives devoted to investment in markets and economic circles.
One acquires a pattern recognition ability, which no Bloomberg terminal, no artificial intelligence robots can teach.
For example, during the bubble of dot.com, a bubble based on arguably transformative technology on the Internet of everything, from Wall Street experts to Hollywood films, made it clear that names such as Cisco, the Yahoo and AOL were kings who would not deposed never.
It was really exciting.
At least until the NASDAQ loses 78% of its value and two of them «Kings» are removed from the market as defeated warriors, while Cisco, who survived the massacre, would never be the same again.
Those days and years now teach us another lesson — a lesson whose pattern few wish to see, for the simple reason that many are either not paying attention or never paying attention.
And with regard to these patterns or classes, what few see today is that Japanese bonds (JGB), yen and Nikkei have just given us a road map of what is waiting for America's Fed, dollar and S&P.
We become Japanese
What is happening this year in Japan It goes far beyond the otherwise important discussions surrounding the Japanese Carry Trade.
As bond experts the recall constantly boring things, such as government debt returns, we often think it is too boring (or too scary) to face them in the face.
Just like the sun, things like death and Market bonds It is often difficult to examine them directly.
The fact, for example, that his performance 30 Years of Japanese JGB just exceeded 4.18% for the first time in its history may seem indifferent to many, who otherwise seek nonstop online the latest news about the war, the memes around artificial intelligence Or the last Washington scandal.
But this historic rise in yields from Tokyo is much more than another bond market mark — is a harbinger of those who are to come to your own court (and your wallet).
The canary in the coal mine
Like the USA, today's Japan, which is the 3rd largest economy in the world, is a paper tiger built on huge debt (greater than 200 % of its total economy) and on a bond market and, by extension, shares, which is entirely based —and located in strong association— with a central bank fatally addicted to publishing (and devaluation) trillion units of its coin in order to preserve the illusion of its economic survival.
If this profile looks a lot like that of her America and EuropeThis is because Japan is just the canary in the western coal mine.
Wherever she goes, we'll follow.
In fact, Japan’s sins are in many respects ours — Especially America.
Blame the experts
A little after the «death» The Nikkei In 1989, the then ambitious Ben Bernanke He gave Tokyo a manual on how to print money to avoid collapse.
Bernanke would use one a similar manual when the American Market They collapsed years later, in 2008.
As we find out now, his expertise was anything other than real know-how.
However, during this period of mass delusion around MMT and huge monetary devaluation, Wall Street has been betting for years (and decades) that Japan's debt levels would eventually collapse under the weight of inevitably increasing bond yields (and therefore the increasing debt service costs).
For decades, unconventional Wall Street investors have bet large sums on a steep rise in returns, which would again crush Nikkei and JGB and become a huge headline.
But this front page never came.
And the previous bet against Japan became known on Wall Street as «widow maker» — «Widow destroyer»That is an extremely dangerous and persistently unsuccessful bet.
Making time, postponing pain
On the contrary, the BoJ she bought herself decades and a market recovery, printing inconceivable quantities yen, to maintain demand for JGBs (Japanese state bonds) and to support Nikkei.
This kept Japanese odds from zero to negative by securing time, while at the same time crushing those who were betting against Tokyo.
And that brings us back to that seemingly boring 4.18% score for 30-year-old JGB.
This percentage confirms that the dam has now been permanently broken for the failed Japanese «plan».
Or, to use the above analogy, the canary in the coal mine just died.
For those who are paying attention, these increasing returns only caused Nikkei 225 losses of 200 billion in a single day, and this sell-off was driven by so-called «Immortals» kings of technology — You know, those who were supposed to never fall apart, like once AOL, Yahoo or Cisco.
The disease is global and kills the coins
But what happens in Tokyo doesn't stay in Tokyo.
The odds on the whole «developed» People are growing in high decades, because now bond markets show more honesty than central bankers, from Tokyo to Washington.
As his performance Bloomberg Global Covereign Bond Index Over 3.72%, returns from Australia and the United Kingdom to Germany and the US are being launched at unsustainable levels.
The bond market essentially calls for a higher risk premium (return) for government debt instruments which are no longer considered reliable.
Given this global debt fiasco, is it surprising that the global money supply of printed coins, which reached $150 trillion in June, has increased by an amazing 50% since 2020?
This so obvious monetary devaluation, which now takes place in front of everyone's eyes does not only explain why coins such as the dollar have lost 87% of their actual purchasing power from their dissociation from gold in 1971, but also explains why the world's central banks accumulate gold at an unprecedented rate in 2026.
Natural gold is no longer a matter of capital allocation, or «discussion» on the dollar• It is now the openly visible and obvious direction of global collateral and the de facto international asset reserve, above collapsed currencies and government debt instruments that are no longer popular.
This is not a fairy tale, but a fact.
Shares for gold
But just as important is what the recent sell-off reminds us of in Japanese technological shares about the time of yesterday's dot-com and what it presupposes for the AI era and tomorrow's purchase.
Unlike the aforementioned bloodshed during the internet bubble, the current US stock market is essentially kept alive by an equally subversive technological narrative, with an even larger overinvestment profile —$400 billion this year alone from top technology companies— which is always moved from the overmarketed to the oversold state.
As U.S. government debt exceeds 40 trillion. dollars and interest rates are rising at levels that cost Uncle Sam, i.e. you, more than $3 billion a day just to serve interest, convergence of a credit crisis is ready to hit a private capital market (private equity) that dies, an already dead private credit market and an overpriced and overproposed AI branch.
This suggests that what we just saw in Japan —Both in the markets and in its currency— is an undisputed warning of what is going to happen to the US NASDAQ and the dollar.
Be prepared
To try to predict accurately time This convergence is a game for fools.
Getting ready for her, though, is not.
Even if central banks such as Fed or BoJ «save» markets with trillions created with a click of the mouse, the destruction of the value of the currencies required to support these «Resistant» Buying will steal your wealth before your eyes, notes Gold Switzerland.
Nikkei, for example, has recorded an impressive 145% rise in the last five years.
However, when measured in terms of gold, the result was a net loss -31%.
During the same period, NASDAQ 100 showed impressive nominal yield of 95%. But when measured in gold, the net result was loss -23%.
And if some of you heard from your advisors over the last 12 years that USTs (American government bonds) are the key to a secure retirement, «no risk of returns» the state debt instruments of Uncle Sam, when measured against gold, have caused you a 90% loss.
See the theft? See the real measure of wealth?
Given the interaction between increasing interest rates, broken bonds, undervalued currencies and excessive risk in the technological sector, placing on natural gold instead of gold «to cards» is the only asset that separates the informed from the uninformed and those whose wealth is protected from those whose wealth is destroyed.
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