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Japan dumps US treasury bonds

Last week Japan stopped buying US treasury bonds in response to Trump’s tariffs on Japanese EV’s.

https://www.youtube.com/watch?v=AaRrQ0_FbiI

Japan is the largest holder of US debt after taking over for China recently. Now very few countries are willing to continue subsidizing US debt, but Japan’s actions are the most significant of all, simply because it holds more than a trillion dollars’ worth of US bonds.

One cannot simply blame Japan or any other country for doing what is in their best interest. After all, Trump’s America First policy is no different. But when everyone acts in the same way to reduce their trade deficits or increase their trade balances, the result can be catastrophic for world trade. And when world trade slumps, the ripple effects are enormous.

So Trump had to back down immediately by pausing most tariffs for 90 days—except for China, with whom he threatens with war if they do not bend to his will.

The main reason foreign nations buy US treasury bonds is to be able to convert currencies into US dollars which have come through trading. When trade is reduced, the need to hold treasuries is also reduced. Hence, the sell-off.

Almost all nations are on the brink of bankruptcy due to high levels of debt. If the current trend continues, war would soon become inevitable. Many already think we are at the point of no return. I do not agree, but the danger certainly exists, especially if the neocons in Washington continue to do their war dances.

Trump seems to think that he can force his terms of peace on the world by threatening the nations with economic and military war if they do not agree to his terms. That seems to be his definition of negotiation. It reminds me of President Teddy Roosevelt’s motto: Speak softly but carry a big stick.” This was his version of “gunboat diplomacy.”

Gunboat diplomacy is the pursuit of foreign policy objectives with the aid of conspicuous displays of naval power, implying or constituting a direct threat of warfare should terms not be agreeable to the superior force.

https://en.wikipedia.org/wiki/Gunboat_diplomacy

When threats no longer work, nations go to war for real. In my view of prophecy, I believe we will see some wars, especially a Mideast war that destroys Jerusalem and the Jewish state. Danger is everywhere, of course, but I believe God will intervene to stop the world from being destroyed.

Most wars, however, begin as financial and economic wars, just as peaceful relations is cemented largely by trading relations. For this reason, most wars are not a surprise.