Japan's Bond Records Are Signaling a Bigger Problem (America Next)

Ajouté : 2026-05-20

[00:00:01]Hey everybody, real estate. No, I'm the economic ninja. I don't even remember what channel I'm on right now. I've been talking about the bond market in the United States a lot lately. We need to talk about Japan. Japan being one of our largest allies economically in the world and uh it is hitting its 30-year bond yields hit a record 4.16% amid what the internet is calling a fiscal shift. Now, this is a very important deal because as rates rise in America and rates rise in Japan, both countries find themselves in a situation where the bond market is screaming uh red, you know, alarms. Um, but at the same time, what you're seeing is investors are unwilling to give the government money at the current rates.

[00:00:50]They're demanding more because they're expecting two things. higher inflation and um uh turmoil in the markets. And you would think that they would go, "No, we'd be happy with current prices because when turmoil in the markets happens, usually uh bond rates fall because people dive in to buy bonds, meaning there's more buyers and sellers and the rates drop. But that's not the case right now. We are in that 2007 two early 2008 scenario. Um, Japanese government bond yields surged on Monday with the 30-year reaching 4.16%.

[00:01:24]This is the highest since 1999 and the 40-year hitting a record 4.39%.

[00:01:32]Let's go back to 1999. What was happening? Japan was in serious crisis mode. They at the point up to 1999, they dominated Hawaii. There was all kinds of Japanese industry in Hawaii. After the collapse, the Japanese markets were in so much pain. Companies were pulling out of Hawaii. Actually put Hawaii into almost a mini depression. I remember as a firefighter, one of our firefighters was buying lots, small lots. And I was looking too cuz they were, no joke, pennies on the dollar, of course, you know, depending on the lava flow zones.

[00:02:05]But it was because so many jobs were pulled out of the state of Hawaii all at once because of Japan's economic failure at that time. Well, we are now in that moment. And you've got to think, okay, well, if Japan caused a mini depression, uh, a massive recession, you know, I'm I'm not trying to be dramatic, but I'm just trying to find the right words. You know, in Hawaii, what can it do to the US? Because lately, the last 20, 30 years, they have been um major purchasers of US bonds. Well, as they slow down their buying or become sellers, net sellers of bonds. What's that going to do to our market? You see, the reason why the bond market is in turmoil is because people are dumping bonds. They're selling bonds. They don't want to buy new ones because they know rates are going to go up. They're going to be forced to go up because of what situation we have right now. Now, it says here the 40-year hitting a record 4.39%. The move followed um Tekkese uh if I pronounced that wrong uh directive for extra fiscal 2026 spending on energy subsidies adding to Japan's massive public debt and high inflation and import costs. While the Bank of Japan grapples with potential rate hikes, while global yields also peak, raising risk for mortgages, loans as and stocks, debt servicing costs are going to rise.

[00:03:29]People don't understand that exact same scenario is playing out in America.

[00:03:33]Everybody thinks that uh oh, Trump got his guy into the Fed, so we're going to lower rates. That is 100% impossible.

[00:03:41]That can't happen. rates are going to have to rise because inflation an inflation wave is going to smack all of us in the face here in America and it's already hitting Japan like incredible numbers are going to come out this summer because of fuel costs but so many other things you're going to have some uh supply chain issues. May Tag's already dealing with that with their appliances. We're going to see some epic times and that pressure, that stress is why you want to be in cash. That's why you want to be like Warren B. Warb Warren Buffett. That's what I'm doing.

[00:04:18]That's what I'm excited about. This should be the exciting time. This is We've had what, four or five years to prepare for this. We rode the silver wave up. We rode the gold wave up. And we rode the cryp crypto wave up. Now we're in cash. If people aren't in cash now, I don't know what to tell you. It's just happening. All right. Okay. Hey, with that being said, thank you so much for watching.