Top 10 economies in the world



In other words...
The US pays much higher interest than Japan
That gap pushes money out of Japan and into dollars
That’s why USDJPY keeps going up
But:
Japan has way too much debt
If Japanese rates rise much more, their system breaks
So markets think the BOJ will step in and cap rates again (YCC)
When people start believing that:
Big trades get unwound
Bitcoin dumps (easy-money asset)
Gold gets jumpy (stress hedge)
Bottom line:
The world is leaning on Japan to keep rates low. If Japan can’t, something global cracks. Markets are starting to price that risk.