Japan Selling Off U.S. Treasuries

 So what would happen if a large number of U.S. Treasury bond holders decided to sell them off and demand their money back?  Well, just like any commodity the price would drop and interest rates would soar as the U.S. government seeks to entice other buyers to buy the bonds that are on the market.

Think of it really simply;  if you have 10,000 apples for sale in your front yard you aren't going to be able to sell them for $1 per apple if you live in MN in October.

However, if you lived in the desert and you had one shiny apple for sale and 10 people were all desperate to buy that apple you might end up selling it for $10 to the highest bidder.  It really is that simple.

Today we read that Japan, who has a lot of financial and population problems, is dumping billions worth of U.S Treasuries.  The U.S. Treasury will have to pay back Japan in dollars and then try and re-sell those bonds into a market that is already flooded with U.S. Treasuries.  This could be the start of nothing or it could be the start of something...but one day this IS how the ultimate collapse WILL happen.

Japan is on the verge of a fire sale of hundreds of billions of dollars in U.S. debt that could crash Treasury markets already teetering on the edge.

Just another exciting day for de-dollarization as Japan's collapse sends people scrounging the couch cushions for dollars to pawn.

The news comes from The Wall Street Journal, which reported that Japan's state-owned Government Pension Investment Fund, which holds Social Security reserves of nearly every Japanese worker, is poised to sell down its $400 billion of U.S. dollar assets and direct the money to Japanese domestic bonds and equities to prop up Japan's asset markets long enough to limp through the next crisis.

The numbers are big because Japan actually has a Social Security lockbox--unlike the U.S., where Congress has frittered away every last penny Social Security has even taken in and replaced them with IOUs.

Out of the $1.5 trillion in that lockbox, Japan's Government Pension Investment Fund owns nearly $400 billion in U.S. Treasurys and another $400 billion in overseas equities--stocks--overwhelmingly parked in S&P 500 companies.

So that's $800 billion of U.S. dollar-denominated assets.

More important, the government pension influences all the other pensions in Japan, since it's a quasi-official seal of approval. Those other pensions manage another $1.5 trillion in corporate pensions alone, and a Government Pension Investment Fund allocation would imply that's another $800 billion in U.S. assets.

As for the dollar, if Japan is about to flip to mass seller, that knocks out the single biggest overseas holder of U.S. debt. And at a time when the No. 2 holder, China, is selling dollars hand-over-fist.

And what if there are not enough buyers for U.S. debt?

Easy: Prices crash and interest rates soar. We'd be back to crashing banks here in America, with Washington's debt service driving toward $2 trillion per year--in interest alone.

Toss in a coming recession, the open border, and funding all the wars Biden's handlers can drum up, and we could be in for a very bumpy ride.

Here;  Why Japan Selling Off US Dollars Is Major Threat To The US Economy (prophecynewswatch.com)