Name: Why Japan is Preparing To Crash the US economy
Uploaded: 2026-03-22T18:00:45.000Z
Duration: 15 min 40 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

To-infinitive

Japan is preparing to crash the entire US Economy because the United States have left no option for Japan but to do that.

The superlative

Japan is the largest foreign holder of US debt and if they decide to sell that debt, it will be a nightmare for the US Economy.

Present continuous

Suddenly overnight, the United States will have to spend trillions of dollars to maintain the debt and mortgage rates for every single American is going to skyrocket.

Because Japan entirely depends on this trade of Hormuz for 95% of their oil.

Since the United States have launched a war against Iran and Iran has closed the Strait of Hormuz, now Japan has no oil.

And if that is going to continue for another six months, it will be the end of Japanese economy.

So if Japan goes down, the United States is going to go down.

In fact, Japan and Germany are one of the main reasons why the dollar is the global reserve currency.

Because Germany and Japan are the third and the fourth largest economies.

So if you have the world's largest economies using the dollar as the global reserve currency, it reinforces that dollar on the rest of the world because major economies across the globe are using it.

And that's why the United States does not allow Germany and Japan to have their own militaries as if they are a part of the United States.

In fact, Japan has multiple times already sacrificed its economy for the sake of the back in 1980s and 90s, Japan almost overtook the United States as the world's largest economy.

But the United States has forced Japan to overvalue its currency which crushed the Japanese economy.

And as you can see that Japan is still suffering the consequences of that up until today.

Because if Japan is going to be the world's largest economy and the United States the second largest economy, how can you possibly have the global reserve currency when you don't even have the world's largest economy?

So it was a necessary move to keep the US Dollar the world's reserve currency.

This time if Japan is going to go down just like it did in 1990s, then the United States is going to go down.

In fact, Japan has helped the United States to create the petrodollar.

So the petrodollar is the main reason why the US Dollar is still the global reserve currency even though that the United States has abandoned the gold standard.

When the United States have signed an agreement with Middle Eastern countries that they will sell their oil Primarily only in US dollar, Japan was their first client because Japan imports 95% of their energy.

So Japan goes to Middle Eastern countries and buys most of their oil and Japan is ready to pay exclusively in US dollar.

So when major economies are buying oil only in US dollar and most of the oil sellers are selling the oil exclusively in US dollars, that creates the global standard that oil is primarily traded exclusively in US dollar.

So that creates demand for the US Dollar, which is why the dollar has remained the global reserve currency.

Japan has almost no natural resources whatsoever, so it primarily relies on Middle Eastern oil to manufacture things to sell to the rest of the world.

So Japan imports a lot of oil and then it manufacture cars, machinery, electronics and and sell them to the rest of the world.

So if Japan does not have resources, if there isn't enough oil flowing into Japan, the Japanese economy is going to collapse because they won't be able to sell anything to the rest of the world.

Without oil you don't have or you cannot possibly produce anything.

Which is why the closure of the Strait of Hormuz is an existential threat to the Japanese economy.

The second way that Japan helped the United States to have the global reserve currency and is because Japan is an export driven economy.

They have pretty much a surplus with most of the world and they sell their goods exclusively also in US dollar.

So when you have Japan, that literally builds some of the best technologies in the world, they build some of the best cars in the world.

And if you want to buy Toyotas from Japan, you might have to buy US Dollars because Japan is only going to accept US Dollars.

Lately they've been accepting different currencies as well.

But if you go back to 1960s, 70s and 80s and they only accepted the US dollar, which is why when you want Japanese goods, you have to buy US Dollars, which is why the world kept buying US Dollars and that demand for the US Dollars kept the dollar as the global reserve currency.

So you can see that Japan is an important part of the US Economy.

Without Japan, the US Dollar less likely to be the global reserve currency, which is why United States is interested to protect Japan, which is why there are dozens of thousands of the US Military personnel in Japan to protect Japan from any threats.

In fact, that is also the main reason why Japan has so much trade surplus with the United States.

So Donald Trump made this claim that we are buying from Japan far more than Japan is buying from us.

But that is basically the strategy that is beneficial for the United States because Japan is selling far, far more in the United States than they're buying from the United States.

They're getting dollars out of the United States and they need those dollars to buy oil from Middle East.

But you cannot possibly instantly just keep a lot of dollars in your bank account.

You are going to keep a lot of US Treasuries, which is how Japan ended as the largest foreign holder of US Debts.

So if the war is going to continue, then Japan cannot possibly use these U.S.

And simply because that oil cannot possibly move away from Middle east to Japan.

So what do you think Japan is going to do with $1.3 trillion of US treasuries they have?

They will be buying oil from the United States.

They cannot get the Iranian oil because it is under sanction.

They cannot get the Middle Eastern oil because it cannot possibly just get to Japan.

They cannot buy Russian oil because Russia is also under sanctions.

So the only option that is left for Japan is to buy American energy.

Now, when Japan is going to buy American energy, then there is no more purpose or a reason for Japan to hold $1.3 trillion of U.S.

treasuries because they kept these Treasuries to be able to buy oil from Middle East.

But now they will simply be directly buying oil from the United States, which means that there is no more interest for Japan to hold so much U.S.

treasuries since these dollars will directly be exchanged for oil.

Which is why from now onwards, Japan will no longer be buying as much as US Treasuries as they did in the past, unless the United States will force Iran to open the Strait of Hormuz.

So Japan will be selling their US Treasuries not because Japan want to do that and to crush the US Economy, but

rather Donald Trump has put Japan in a position where they have no other option but to do that because they need to import energy from for their country to survive.

The second problem is the military problem.

So Japan entirely relies on the United States for protection.

There are dozens of thousands of US Military personnel to protect Japan.

But now the United States is moving away military personnel out of Japan to Middle east because United States is facing a shortage of soldiers in Middle East.

They told us first that this war is simply going to be a few air strikes, which is why the United States did not consult Japan and the United States does not consult European countries and just started this war.

But now we know that this war is going to be dragged.

Most likely the United States is going to deploy troops on the ground.

Now, when this war started, I told you this is going to happen.

And some of you in the comments told me, no, the United States will not send troops.

But now Pentagon has requested extra $200 billion against the war with Iran.

And why would you ask so much money if you are not planning on or if you're planning to stop this war in the foreseeable future?

So after the $200 billion, when they will deploy some troops into the ground, they will need far more money.

And the Congress will be forced to provide Pentagon because you have started this war.

And if you don't finish this war, it is going to be the end of American empire.

And that's how this war is going to turn into another forever war.

And until this war continues, the Strait of Hormuz is going to be closed.

So Japan will have to build its own military.

Since then, there is no one else will be there to protect them because the United States.

If the US Cannot possibly protect the Strait of Hormuz, how can the United States protect Japan from China, for example?

And that means that Japan will no longer be relying on the US Military.

So Japan will be using all the extra cash they have to build their own military now.

But here is the biggest problem out of all the problems that we have discussed today.

So over the last 40 years, Japan had deflation since the United States crashed the Japanese economy, when you have deflation, that means that prices falling down.

Then the cost of borrowing money is extremely cheap, if almost zero.

So the central bank in Japan has kept interest rates at almost 0% for the last 30 years.

So you could theoretically borrow money from the Japanese bank at 0% interest rate or 0.5%, 5% in interest rate and buy the U.S.

treasuries that pay you, for example, 3% in interest rates or in yields.

Suddenly, you're borrowing money from one country and investing in another country.

And you're primarily investing in the US Treasuries that are guaranteeing investment.

And you're pocketing the difference, which is 2.5 to 3% in yields.

And that's how the United States borrowed trillions of dollars over the last 30 years.

Because investors, or primarily WA street or even Japanese firms could simply borrow money from Japan and buy U.S.

debts because there was a huge difference in interest rates.