Japan Is Breaking: The World's Biggest Carry Trade Is Starting to Crack.(maneco64)

Today we will look at the current turmoil in the forex and government bond markets as the Japanese yen and the Japanese government bonds or JGBs continue to drop sharply.

I explain why this crisis in Japan is so important for the rest of the world and how the Japanese Yen Carry Trade is at the heart of it.

The conclusion is that the cheapest source of funding for the world's financial systems, Japan, is rapidly drying up.



[Posted at the SpookyWeather2 blog, July 6, 2026.]