To: TobagoJack who wrote (219181 ) 1/10/2026 6:26:01 PM From: Box-By-The-Riviera™ Read Replies (7) | Respond to FROM TOKYO TO WALL STREET: Why Japan's Bond Crisis Is a Nightmare for the U.S. Treasury and Will Unleash a Gold Tsunami! The implications of this are profound, and they will ripple across every asset class, from currencies to equities to commodities. But the biggest beneficiary of this Tokyo tremor will be gold. You need to see the connected dots between the rising yields in Japan, the impending crisis in the U.S. Treasury market, the inevitable return of money printing in the United States, and the coming explosion in the price of gold. You need to know how this chain reaction will force global central banks to accelerate their flight from the U.S. dollar and into the safety of gold, and how this, in turn, will ignite a firestorm of profits in the deeply undervalued precious metals mining sector. Let’s Dig Into The Following: For years, the Bank of Japan has been engaged in Yield Curve Control. The premise was simple: the BoJ would print an unlimited amount of yen to buy as many Japanese Government Bonds as necessary to keep the 10-year yield pinned at or below a certain level, most recently 0.5%. This policy turned the BoJ into the buyer of last resort and the single largest owner of the Japanese bond market, effectively nationalizing it. Why the inflation they so desperately sought has arrived, not as a gentle breeze, but as a raging typhoon, and the very policy designed to save them is now threatening to sink them! As the Bank of Japan is forced to retreat from Yield Curve Control, a new and far more dangerous phase begins. To defend the yen and prevent a complete collapse of their own bond market, Japanese financial institutions will be forced to repatriate capital. They need to sell their foreign assets and bring the money home to buy JGBs, creating a domestic bid to replace the waning influence of the BoJ. And what is the largest and most liquid foreign asset held by Japanese institutions? It’s the United States Treasury bond. Now that selling process has already begun and why it will accelerate in 2026! The timing of Japan’s exit from the U.S. Treasury market could not possibly be worse. The United States is caught in a fiscal doom loop, a self-reinforcing cycle of debt and deficits that threatens to spiral out of control. The numbers are staggering, and they paint a picture of a nation on the brink of a sovereign debt crisis. The political system is incapable of making the hard choices, so it continues to borrow and spend, making the eventual crisis even worse. Why the U.S. is on a collision course with its mathematical doom loop reality, and the exit of Japan from the Treasury market just may be the catalyst that will trigger the crash! Faced with a fiscal crisis of this magnitude, the Federal Reserve will be left with only one option, the same option the Bank of Japan chose a decade ago: Yield Curve Control is coming to America. The Fed will have no choice but to intervene directly in the Treasury market, printing money to buy U.S. government bonds and artificially suppress interest rates. Why it will become the buyer of last resort, monetizing the government’s debt to prevent a complete collapse of the financial system! This is where the gold thesis goes into overdrive. The moment the Fed announces YCC, the investment case for gold will transform from a contrarian bet into an institutional imperative. The printing of trillions of new dollars to fund the government’s deficits is, by definition, inflationary. It is a direct devaluation of the currency. In such an environment, gold is not just an attractive asset; it is a necessary one. It is the only monetary asset that cannot be printed into oblivion by a desperate central bank. Why the Fed’s last stand will be the starting gun for the greatest gold bull market in history! The move to Yield Curve Control in the United States will not go unnoticed by the rest of the world. Global central banks, who collectively hold trillions of U.S. dollars and Treasury bonds as their primary reserve assets, will be watching with horror, just like the world did on August 15th, 1971. They will see the world’s reserve currency being actively and aggressively debased, and they will have no choice but to protect their own balance sheets. Why the recent trend of central bank gold buying will turn into a stampede! And as the price of gold begins its historic parabolic ascent, the investment case for the precious metals mining sector will become undeniable. The miners profits are not just a function of the gold price; they are a function of the spread between the gold price and their cost of production. While the price of gold is set to explode higher, the miners’ costs are likely to remain relatively stable due to their biggest component energy costs being proactively capped. Why the multiplier effect will explode miner profits and the great rotation into the mining sector is about to begin in earnest!
