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Japan’s economy has been a ticking time bomb for years. Everyone in finance has known that.
But now the timer just hit zero, and the rest of the world is about to feel the shock.
For decades, Japan kept its economy alive with 0% interest rates, massive government debt, and a currency strategy that flooded the world with cheap money.
That money didn't stay in Japan. It poured into American bonds, stocks, and real estate. It helped hold up global markets and suppress interest rates.
Until now.
In 2024, Japan raised interest rates. Then they did it again. And just like that, the Yen carry trade, one of the oldest plays in the financial system, started to break.
The yen surged. Japanese investors panicked. And global markets took a hit.
We saw:
Japan’s stock market drop 15.6% in a matter of days
The global markets fall 5.75% in a single week
Massive sell-offs in US Treasuries and tech stocks
And investors around the world scrambling to unwind leveraged trades
In the video I just released, I explain exactly what’s happening and what to expect next.
But here’s the part most people are missing...
It’s not over. It’s just beginning.
In 2025, Japan’s bond auctions are failing. Yields are hitting multi-decade highs. Their central bank is cornered. And Japanese investors are still pulling money out of foreign markets.
If this continues, over $3 trillion could leave the global system. That would push up borrowing costs, crash asset prices, and trigger a full-blown recession.
The US, UK, and EU will all feel it. Bond markets are already flashing warnings. And we haven’t even hit peak pressure yet.
So what do you do when the system looks this fragile?
You stop relying on it.
That’s why I built my second business, helping experts turn their knowledge into online coaching offers that don’t depend on the markets, banks, or interest rates.
And if that’s something you want to explore, I’ve included a free guide that walks you through exactly how this industry works and how you can build a $100k per year business around your experience.
Stay stoic,
Max
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