Two Audio Essays: A Japanese Unwinding vs An Iranian Tightening
Summary
Host Older discusses the emerging crisis in the US dollar system, triggered by the yen's freefall and Japan's inability to raise interest rates due to zombie companies. The episode analyzes failed US Treasury interventions, including controversial currency swaps that angered Europe and a botched yield curve control attempt. It also highlights geopolitical instability, such as Japan’s new prime minister, framing these events as signs of imperial decay and the rise of a multipolar world.
Topics discussed
Introduction to the new multipolar world
Summer break recap and the 'silly season' contrast
The emerging US dollar crisis and Japan bailout
Explaining the yen carry trade and market dynamics
Japan's zombie companies and Ponzi borrowing trap
Why Japan cannot raise rates or let the yen fall
First intervention: Bessent shorts euro to buy yen
European backlash and the second failed intervention
UK and Japan selling US debt and energy import risks
Political instability in Japan and imperial collapse signs
Latest intervention: Yield curve control attempts
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