Gold Telegraph: Without Central Banks Monetizing Debt, the Entire System Cracks
Gold Telegraph: Without Central Banks Monetizing Debt, the Entire System Cracks
5-22-2025
Gold Telegraph @GoldTelegraph
Suddenly the entire planet is watching Japan. We all have been watching this financial circus for years.
This cartoon I made from 9 months ago is starting to look like reality. Look at the bond market right now in Japan.
I have been sounding the alarm on Japan for years. I mentioned this on stage in Denver last year but Japan has literally socialized its financial system.
What was once unthinkable is now the model… Without central banks monetizing debt, the entire system cracks.
BREAKING NEWS: THE EUROPEAN CENTRAL BANK IS WARNING THAT A FUNDAMENTAL REGIME SHIFT COULD BE UNDERWAY AS INVESTORS RETHINK UNITED STATES ASSETS
The world is becoming awake.
“The ECB suggested that investors seem to be rethinking U.S. assets…”
Gold is the anchor that reality ties to your ankle when you spend without restraint. Governments know this, that’s why they fear it. Because gold doesn’t negotiate… it exposes.
Japan printed itself into a corner. Now the world is watching its bond market and pretending to be shocked.
What did you expect when the central bank owned over half the debt? Why is this so hard to understand?
I wrote this nearly 2 years ago. Complete monetary confusion in Japan.
Gold Telegraph: COMPLETE MONETARY CONFUSION IN JAPAN Japan's budget demand for the upcoming fiscal year is expected to reach a RECORD high of over $767 billion. The Japanese government has debt that's over twice the size of its economy. Largest amongst industrial nations. Japan is the third largest economy in the world. The Bank of Japan is in a deep, dark corner as they have created an illusionary financial market that is now distorted.
‣ Gold is right at record highs in Japan.
‣ The Japanese Yen's buying power sinks to a 53-year low.
‣ The country STILL has NEGATIVE interest rates.
‣ The Bank of Japan is purchasing government bonds at a RECORD pace this year.
‣ In May, The Bank of Japan reported an unrealized loss on its Japanese government bond holdings for the first time in 17 years
‣ The Bank of Japan holds 53% of outstanding Japanese government bonds.
‣ The Bank of Japan owns 6% of the entire Japanese stock market.
This is what flying by the seat of your pants looks like.
We recently discovered that the Bank of Japan is collaborating with 60 companies, including megabanks, regional lenders, Sony, Toyota, and East Japan Railway, on a pilot program to develop a digital yen.
As I have often said: Gold is a hedge against stupidity. How much more strange can Japan get?
Source(s): https://x.com/GoldTelegraph_/status/1925028897852105061