US Economy on Brink of Collapse: Japan ditch US Dollar!

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Foreign governments heavily invest in U.S. Treasury securities, facing significant risks. Rising U.S. interest rates can decrease the market value of Treasuries, leading to potential losses during sudden rate hikes often triggered by inflation. Additionally, a weakening U.S. dollar diminishes the value of these investments when converted to other currencies, presenting a risk particularly for nations with volatile or strengthening currencies.

Threats of inflation can also reduce the real returns on U.S. Treasuries if the inflation rate exceeds the yields, which erodes the purchasing power of foreign reserves. Political and geopolitical tensions, such as U.S. debt ceiling debates, may disrupt market confidence and financial market access, increasing investment risk.

Furthermore, liquidity risks during financial crises can force large holders to sell at lower prices, negatively impacting market values. Countries with substantial holdings, like China and Japan, face concentration risks that could result in significant losses if the U.S. financial system struggles or if the dollar sharply declines, complicating their market exit strategies.

As of September 2024, Japan is the top international investor in U.S. government bonds, despite experiencing noticeable fluctuations in its investment levels over the year. In March 2024, Japan held U.S. Treasuries worth approximately $1.87 trillion. However, by May, this figure had reduced to about $1.128 trillion following cumulative sales of $59.5 billion, including a significant reduction of $22 billion in May after a $37.5 billion decrease in April.
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US reckless spending is driving nervous investors away from the dollar to safer financial assets.

fffuu
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America pay for yourself if you can’t afford it don’t spend it 😂😂😂hope the dollar collapses soon so everyone can it like toilet paper 😂😂😂😂😂

salamatali-gy
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Buy low Sell high! Japan bought lots of U$ when the yen was high at favourable exchange rates of around 110 yen to U$1. The exchange rate now is around 145 yen to U$1, a 30% profit.

Trueye-slmr
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IT IS A MATTER OF TIME FOR US DOLLARS TO FULLY COLLAPSE. NOT IF WHEN

PerihanAlici-we
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Japan recognizes the impending weakening of the dollar and is jumping ship.

sutikareoluwagbenga
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Japan has all rights to save their currency 🗿 No more US bonds

uraa
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If Asians can have their own one monetary or Asian.l Dollar, BRICS was the best option

arnoldcomparativo
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The US economy is already in recession. Now rate cut will ignite inflation. The banks will tighten even more, all consumer and corporate credit lending. This is the beginning of a deflationary period for your assets. Stocks markets will decline, and stock values disappear in a blink of the eye. Businesses will begin layoffs in earnest which will soon be reflected in the unemployment rate and unemployment claims, to further solidify the recession. In fact, Now that the FED cut rates in Sept, it will signify that the Titanic is going under, and it will suck everything down. Retail and housing sales will truly decline as consumer hold off their purchases. The inverted yield curve will then turn positive, but remember, certain assets like stocks and Crypto’s acts as a hedge. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Adriana Jensen whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

darranhenderson
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I hope the dollar value drops below all other currency

GameZzz
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we support China Asia interest new global economic new currency change the global welcome to China Asia and Kick out old u.s. dollar hegemony not support whole world reject u.s. old dollar hegemony

MyVoice-dl
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Ditch the dollar, ditch the dollar! Somebody should make a song on it😅

dennisvillacorte
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I'm a 70 y.o. American, and I find it difficult to watch my country self destruct.

joeykitty
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Американцы в первую очередь виновны в падении доллара, заморажевание чужих активов в долларах способствовало этому.Вести политику устрашения с помошью своей валюты, уже не устраивает большенство стран в мире. Так что всё закономерно.

РафаэльСаркисянц-ът
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Japan should change stance..join BRICS

fredaheunes
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People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365, 000 in stocks and assets. Wish I could accomplish that.

zapaweb
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Japan just realized they acquired tons of printed green papers using their own sweat and blood money

akt
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Is Japan gonna join BRICS? That would be epic.

Ben-vhty
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Us is really in a very desperate position today
😂

sumangupta-wwqz
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The commentary is exhausting. Less talking. More US dollar ditching. Healthy for the world.

YsqaCk_user
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US should close all overseas bases and go home. Bye !

malcolmdavid