A critical risk being ignored in the U.S. is the implosion of...

A critical risk being ignored in the U.S. is the implosion of Japan due to the trade war. Inflation in Japan is running at a multi-decade high and Ueda this week confirmed rates are going higher. This could trigger the final unwind of the U.S. carry trade which imploded last August: https://cnbc.com/2025/05/28/japan-government-bond-yields-spark-fears-of-carry-trade-unwind.html… "

Japan’s bond market is igniting fears of capital flight from the U.S. and a carry trade unwind as long-dated yields hover near record highs." Here we see the Nikkei top pane which has imploded twice in the past year.

The U.S. VIX middle pane and JGB yields bottom pane are hovering near the critical breakout level.

The U.S. will be the locus of a reverse 1997 Asian crisis in which Japanese hot money explodes out of U.S. markets at a record pace.

https://x.com/SuburbanDrone/status/1927757770452791612