Transcription
When a country or government can't protect you, all the money you've earned in your life can instantly become worthless! Whether it's South Korea, Egypt, Argentina, Russia, or even now Iran and Venezuela, their money has all become worthless! But as long as you don't live there, it has nothing to do with you! Right?
Now, the next country to be affected is Japan! Although you may not live in Japan, you can't escape this time either! Because Japan is now trying to save itself! And the way to save itself is to trigger an unprecedented financial crisis or even war! This isn't the first time this has happened! Not only will wealth be redistributed, but even national rankings will be affected! So, does this still have nothing to do with you or me?
I have a senior colleague who did business in Russia for twenty years and became a billionaire! And then? A few years ago, he witnessed firsthand the Russian currency having three zeros erased from the end! His 100 million in the morning was reduced to only 100,000 by evening! I didn't feel anything about this at first! Until I saw Japan once again taking action to save itself! What does that mean?
Hello everyone, I'm the Sweeping Monk! Friends, during the 1997 Asian financial crisis, it was the Thai baht that collapsed, but ultimately the entire Southeast Asia was affected. Our parents' salaries and savings shrank, countless homes became liabilities, and a lifetime's savings vanished! So the question is, why did the Thai baht collapse? Many say it was because Thailand's economy was too weak, it didn't have enough US dollars, or even because George Soros shorted the baht! These are all reasons, but not the root cause!
If you dig deeper, the real trigger was Japan! At the time, Japan had pushed the interest rate on the yen to almost 0%, practically giving it away. Who wouldn't want to borrow money like that? So international capitalists flocked to Japan to borrow yen! What did they borrow for? They lent it to developing Southeast Asian countries like Thailand! These countries had money to build skyscrapers, railways, and speculate on real estate, creating an illusion of prosperity! It was at that time that Japan became Southeast Asia's largest creditor!
And then? In 1997, Japan itself couldn't hold on any longer! Because at the time, the whole world was borrowing money from Japan and then converting the yen into other currencies for investment, the yen depreciated wildly! All the debts lent out by Japanese banks were devalued! Simply put, if a Japanese person lends me 1 million yen, I only need to repay 600,000 yen! Wouldn't this directly shrink the assets of Japanese banks?
To save itself, Japan had no choice but to frantically withdraw its funds to recover the lent money! So Japan withdrew a quarter of the money it had previously lent to Southeast Asia! And then what? Thailand was the first to fall victim! Having borrowed money from Japan and unable to repay it, George Soros saw this loophole and shorted Thailand, rendering the Thai baht worthless! This triggered a financial crisis throughout Asia! All Asian currencies became worthless! Especially the South Korean won, which depreciated by half against the US dollar! Think about it, a house in South Korea that originally cost 100 million US dollars could now be bought for only 50 million won! Because of this, all of South Korea's chaebols and assets were snapped up by American capitalists! If you look at the major South Korean corporations now, their largest shareholders are no longer South Koreans but Americans!
And now? The same script is playing out again! For the past thirty years, Japan's interest rates have been almost 0%. Funds, investment banks, and even Japanese individuals worldwide have been borrowing yen and investing it in other countries! This time, however, the money isn't going to Southeast Asia but to the United States! In other words, the reason many US assets have seen such explosive growth is because people borrowed money from Japan interest-free and then used it to speculate on stocks, real estate, and bonds in the US, artificially inflating the price! Because of this, the yen has been converted to dollars for thirty years, and it has now fallen to a historic low!
And now, the Japanese government has finally intervened! It wants to save its currency by selling its remaining dollars to buy back yen! You heard right! Japan is now starting to sell dollars! And what are Japan's largest dollar assets? It's those $1.24 trillion in US Treasury bonds! Ladies and gentlemen, in 1997, Japan's attempt to save itself by demanding repayment from Thailand triggered the Asian financial crisis! Now, Japan, in an effort to save itself, is also trying to force the US to repay its debts, following the same script.
If Japan continues to sell dollars and US Treasury bonds, what do you think will happen? If the yen's exchange rate is rescued, will everyone who borrowed yen face financial ruin? Imagine you borrowed 1 million yen to invest in the US. You don't need to pay interest on that 1 million yen, but if the yen appreciates, you'll have to repay 1.2 million yen! The extra 200,000 yen is interest, right? If you can't repay, will you have to sell your US assets at a loss? And when everyone who borrowed yen can't repay and everyone sells their US assets at a loss, will the US collapse?
Ladies and gentlemen! The script is the same, but the outcome is different! In 1997, the collapse occurred in Southeast Asia, which had borrowed money from Japan, and it was American capitalists who ultimately bought at the bottom! But now, the collapse isn't in the US, which borrowed money from Japan, but in Japan itself, which lent the money out! And it's still American capitalists who ultimately buy at the bottom! What does this mean? Most importantly, do you know how these countries' actions will affect your wallet? If you don't even know this, don't even think about seizing this opportunity to become a billionaire! You're more likely to get fleeced!
I'm not trying to scare you, I just want to wake up some of the people who can be woken up! In fact, when a financial crisis occurs, when the government can't protect your assets, if you're still standing still waiting for a bailout, then you may become a slave to certain countries or capitalists forever! Even your next few generations will be working hard to make money for these people while you're still unaware! That's the most tragic thing! So we must learn to save ourselves! And what I'm going to talk about in this video today may overturn everyone's values and worldview. I will try to explain it very simply and directly. If you want me to reveal my strategy, you can like this video! If you really don't want to miss this information anymore, you can consider subscribing to my channel and turning on notifications! Everyone! Now let's get straight to the point!
We all know that the United States currently owes $40 trillion in debt, but actually about 80% of that is domestic debt! What does that mean? It means that today you're short of money, even though you've borrowed a lot of money... But most of the money you owe is borrowed from your family! So what happens when you can't repay it? Nothing happens, it's just family, if you can't repay, you can't repay! That's domestic debt! Similarly, while the US appears to owe a lot of money, a large portion of that debt comes from loans made by Americans themselves, such as banks and pension funds! It's like this: I'm an American, I work, I earn money, I pay taxes to the US government, and then the US government pays interest to banks and pension funds! The banks and pension funds receive the interest, and ultimately the money returns to Americans! In other words, the interest paid by the US government on its debts is simply being paid to its own people! And most importantly, the largest creditor of the US is the Federal Reserve! If the US government really runs out of money or can't repay, the Federal Reserve will print money and lend it to the US government to spend! So, of the US's $40 trillion debt, 80% is domestic debt —it's just the US paying off its own debts! To put it more bluntly, these Americans themselves aren't the real creditors of the US! The real creditors of the US are its foreign debt, which is roughly $8-10 trillion out of the $40 trillion.
So, does this mean the US only needs to settle its foreign debt to be okay? How? First, let's think about who to target! Let's look at which countries in the world are lending the most money to the US right now. First is Japan (blue line)! Second is the UK (yellow line)! And then comes China (red line)! China was originally the largest creditor, but since 2018, it has been selling US Treasury bonds! The US debt crisis didn't collapse, why? Because Japan and the UK started taking over the US debt! So now the largest creditor of the US is not China, but Japan, and then the UK!
Now the question is, is there a legal way to default on debts? Yes! I myself enjoy legally defaulting on debts! For example, today I borrow 10 million from a bank to buy a house! 20 years later, although I repay the bank 20 million including principal and interest, it seems like I paid an extra 10 million in interest because I borrowed money from the bank. But actually, that 20 million can only buy a toilet after 20 years! Isn't this equivalent to borrowing a house from the bank, but when I repay, I only repay a toilet? I'm using inflation to shrink the debt! The second way to default on a debt is to buy back the 10 million IOU I owe the bank for 5 million when the bank urgently needs the money, and then tear it up! For example, I originally owed the bank 10 million to buy a house, but the bank urgently needs the money and is willing to let me pay them 5 million. So, am I defaulting on the 5 million debt? This is defaulting on debt through a low-price buyback!
Similarly, if the US wanted to default on its debts to Japan and the UK, wouldn't it create unprecedented inflation? And then what? Wouldn't it make those two countries urgently need money? So you'll find that the US's first step is to suppress the exchange rates of the yen and pound sterling to extremely low levels! In recent years, the exchange rates of both Japan and the UK have plummeted! What does this mean? If you are Japanese today, and your yen has plummeted and depreciated, then going to the US and buying American goods will become more expensive for you, right? Similarly, if the yen and pound sterling have plummeted and depreciated, then US debt will become more expensive for Japan and the UK, right? A higher exchange rate is only the first step!
And then what? During the 2020 pandemic, the Federal Reserve lowered interest rates to 0% and printed money without limit to buy US Treasury bonds. Didn't this cause the price of US Treasury bonds to rise? Didn't the interest rates fall? At this time, China stopped buying US Treasury bonds, and Japan and the UK stepped in, buying up countless US Treasury bonds when their currencies were at their highest and prices were at their lowest, becoming the largest holders of US debt! And then what? After they all bought in, the Federal Reserve started raising interest rates in 2022! Directly driving down the price of US Treasury bonds, the US Treasury market entered a bear market! Japan and the UK were directly trapped! But being trapped isn't a problem, as long as Japan and the UK don't sell their US Treasury bonds, the US will still have to repay them when they mature, so they won't lose money! So this was just to get them into the game! The slaughter that followed is what's happening now!
Driving up oil prices! The US directly went to fight with Iran and directly blocked the Strait of Hormuz! Everyone! 95% of Japan's oil has to pass through that strait! With the Taiwan Strait blocked, the prices of electricity, gas, shipping, bread, milk, pork —virtually everything— have skyrocketed throughout Japan. During the Russia-Ukraine war, the US blew up oil and gas pipelines carrying Russian oil and gas to Europe! Electricity in Britain is so expensive in winter that even heating is unaffordable! Hey! Let's think about this: oil prices have doubled! Isn't that already very expensive? And oil is bought in US dollars, right? With the yen and pound sterling at rock bottom, won't oil be even more expensive for Japan and Britain? Especially for Japan, which is already struggling!
So what can be done? The first thing is to make the yen appreciate, right? Otherwise, oil will be even more expensive for Japan due to currency devaluation! Because of this, Japan is now forced to intervene in the exchange rate! How? By selling its dollars and buying back yen! Making the yen appreciate! But here's the problem: Japan has stockpiled over 1.3 trillion US dollars in assets, which seems like a lot! But of those 1.3 trillion US dollars, only 160 billion US dollars are actually usable cash! Moreover, Japan already spent over 100 billion JPY during the first currency intervention in 2022! Now it has spent another 30 billion JPY! This means Japan is almost out of US dollar cash! Most importantly, if Japan sells all its dollars, it won't have any left to buy oil! Therefore, Japan needs to increase its dollar holdings while selling dollars! So what can it do? It's like having 100 million dollars, but your house is only worth 99 million! You only have a little over 1 million in cash! If you keep spending your cash but don't have enough, you'll eventually have to sell your house for cash, right? Similarly, whether Japan intervenes in the exchange rate or buys oil, it needs to spend US dollars, but it currently has no US dollars! So, can it only sell a portion of its over 1 trillion US dollars in assets, namely US Treasury bonds, to raise cash?
And when Japan sells dollars... When the US sells off its Treasury bonds, this is what many people initially predicted: those who borrowed money in Japan and invested in the US will be unable to repay their loans due to the yen's appreciation, ultimately leading to a massive sell-off of US assets! Will the US eventually collapse like Thailand in 1997? However, you'll find that the US stocks we started monitoring and investing in 3-4 weeks ago have not only rebounded but also reached new highs! Why? Because the US was already waiting for Japan!
So how did we capture this rebound? We don't judge the situation based on current events, news, or financial reports and then invest our hard-earned money —it's that simple! The development of the situation only helps us predict the general direction; we are not from the future! We don't have a crystal ball, and we can't predict the specific changes or timing of events! We are not the creators; we cannot control them! In other words, being correct in the general direction only increases our chances of success; only charts can clearly reveal the subtle clues of capitalists' strategies! Many people think that every investment must be right and profitable! That's godhood, not human! I like to use an analogy: if I lose $1 when I lose and $10 when I win, does it matter if I lose five times? Because as long as I win once, the previous five losses are just my cost. You'll see clues in the charts about large players' buying and selling. Risk control allows us to lose less and win more in the long run. An automated trading system and plan determine our mindset, which is also the key to sleeping soundly at night, no matter how much money we invest! Because we are executing a system! This system doesn't rely on guessing, insider information, or luck! It relies on money management, risk control, and chart signals to smooth out our human nature and emotions! This is what I do with my students, and it's what I'll be sharing with you in the Investment Transformation Training Camp! Today, you don't need to pay $400 or even $1. If you're my fan and truly want to survive in the market, I'll give it to you! Consider it a free class! Those who missed out last time are also out of luck this time! So quickly click the first link in the description to secure your spot!
So listen carefully! This time, why didn't the US market collapse but instead rose? Because the Federal Reserve intervened to save the market! The Federal Reserve has a secret mechanism called FIMA! Simply put, when other countries start selling US Treasury bonds, the Fed prints money, creating dollars out of thin air to buy back the sold-off bonds! Listen carefully, it's printing money, not borrowing from other banks or other countries—it's directly printing money! And that's not all! Every April, during tax season, the US receives a flood of tax revenue, causing a surge in the US Treasury's money reserves! This April, the US Treasury's TGA account suddenly surged to over one trillion dollars! This money is tax revenue collected by the US government from its citizens —ready-to-use cash! Think about it: the Fed is printing money to buy up bonds, and the government is using taxpayers' money to buy US Treasury bonds! With these two forces acting simultaneously, how could the price of US Treasury bonds not stabilize? How could the US stock market continue to collapse?
So some people say that the Fed is printing money to save Japan while simultaneously saving the US itself, preventing a collapse! I can only laugh! The money the Fed prints isn't a free gift to Japan; it's a loan! It's like today, I owe you money, and you have to pay me back! I won't pay you back, but I can lend you the money! Do you understand? Japan takes these dollars and ends up paying interest to the Federal Reserve! Moreover, when Japan uses these printed dollars to buy yen and make the yen appreciate, those dollars will eventually return to the Federal Reserve! The real killer move is that the US government uses its tax revenue to quietly buy up the badly valued US Treasury bonds one by one when Japanese selling them off! Think about it carefully! Japan bought US Treasury bonds when the dollar was at its highest, Treasury bond prices were at their highest, and interest rates were at their lowest! In other words, Japan bought them at the peak! Now that US Treasury bonds have fallen to rock bottom, Japan is forced to sell them at a bargain price! And then? The Federal Reserve uses printed paper to buy them at rock-bottom prices, and the US government uses taxpayer money to buy them at rock-bottom prices! Simply put, the money is all printed and collected by the US itself! It's like the US is exchanging almost zero-cost paper for the US Treasury bonds that Japan bought at a high price with real money! Japan sells 100 billion, and the US buys 100 billion! After the US buys up these cheap US Treasury bonds, they will either be cancelled by the Federal Reserve or held by the US government until maturity! This will also push up the exchange rates of the yen and pound sterling! Because the Fed prints money to lend to Japan to buy yen, the yen appreciates! With the yen appreciating, the remaining US Treasury bonds held by Japan, when converted into yen, are worth less! A double whammy! Isn't that ruthless?
But it doesn't end there! Now, oil prices are soaring, and prices worldwide are rising! This means the remaining US Treasury bonds that haven't been bought back by the US will also be diluted by inflation! It's like someone borrowed 10 million to buy a house twenty years ago, and now they're paying you back 20 million, but that 20 million can only buy a toilet! In the end, the US silently defaults on its debt! Some might ask, won't the US itself experience soaring prices by printing money to buy these bonds? No! Because this printed money doesn't flow into the real economy! This money doesn't go to buy bread, gasoline, or houses; it goes directly to the Bank of Japan, which then uses it to buy yen! Ultimately, this money returned to the US market, circulating aimlessly in the US Treasury and foreign exchange markets! American consumers didn't see an extra penny in their grocery stores! Therefore, US domestic prices won't explode because of FIMA, but Japanese US Treasury bonds have quietly changed hands!
Some might ask, "Doesn't Japan have another Japan overseas? Japan has the world's largest net overseas assets, roughly three to four trillion US dollars. Can't they use this money to stabilize the currency?" Well, you need to understand that this money doesn't belong to the Japanese government, but to Japan's large corporations! Do you think Japanese companies, after earning dollars in the US, will obediently convert them into yen and hand them all over to the Japanese government? No way! They'll keep the dollars in the US to build new factories, buy stocks, and invest in financial products! Why? Because converting their dollar earnings into yen will cause it to depreciate continuously—who would convert that? And even if they wanted to remit the money back to Japan, the Japanese government couldn't spend it. This is someone else's money! Most importantly, the largest shareholders of these Japanese companies are American capital! These Japanese companies were bought up by American capitalists during the 1997 Asian financial crisis! Therefore, no matter how much overseas assets Japan has, the Bank of Japan can't spend all this money! Their dollar cash reserves are almost depleted, forcing them to sell US Treasury bonds at rock-bottom prices to save themselves! So, it's not the US that's in trouble, but Japan!
Simply put, this scheme has six steps! First, suppressing the exchange rate of the yen and pound sterling to force Japan and the UK to buy US Treasury bonds at a high point. Second, raising interest rates causing a sharp drop in US Treasury bond prices! Third, launching a war to drive up oil prices and deplete their dollar cash reserves! Fourth, the Federal Reserve printing money, and the US government using tax revenue to absorb the losses! Fifth, the US buying up US Treasury bonds at rock-bottom prices while simultaneously pushing up the yen exchange rate for a second round of profit-taking. Sixth, letting inflation dilute the remaining debt!
But did you think the video ended here? No, this is just the beginning! After Japan intervened in the exchange rate, the yen initially rose but has now fallen back! Why? It's simple: Japan is accelerating money printing! Ladies and gentlemen, what has driven Japan's economy over the past few decades? It's all thanks to the Bank of Japan constantly printing money! They print money and lend it to the Japanese government to spend, subsidize businesses, and support the people! The state of the Japanese economy is measured by how much their printing presses are running! But what about now? Oil prices are skyrocketing, inflation is rampant, people can't afford to buy things with their wages, and businesses are struggling to survive. So what can they do? The Japanese government can only subsidize with even more money, right? Where does that money come from? It just keeps printing money! The more money they print, the more yen circulates in the market! Because the amount of goods in the market remains the same, but the amount of yen has doubled. What's the final result? The purchasing power of each yen is reduced by half —it's just stolen away! And then what? Everyone sees the yen becoming increasingly worthless, so who would dare hold onto it? That's why the yen is constantly being borrowed and exchanged for US dollars or gold! Everyone sells, and the exchange rate keeps plummeting—that's called "shorting the yen"! So it's not just big players who can short the yen; the moment you decide you don't want to hold yen, you're also shorting the yen! When the whole world realizes that Japan's printing press can't be stopped, everyone will rush to sell yen! Ultimately, every extra yen printed by the Bank of Japan will create more selling pressure in the market! The more money is printed, the more the yen depreciates, and the more it depreciates, the more money is printed, accelerating this vicious cycle! The Thai baht did the same, and then the whole of Asia was wiped out!
What about this time? A financial crisis is merely the first choice for a country driven to desperation! It has another option: to divert attention from internal problems! How to divert attention? As I mentioned at the beginning, a war! Think about it: when Japanese prices keep rising, the yen keeps falling, and ordinary people can't survive, what will the government do? It will try to shift public attention from the domestic mess to an external enemy! Ladies and gentlemen! Japan is currently rebuilding its military, isn't it? If a war really breaks out, no matter who it fights, as soon as war begins, global capital will flee to safe-haven assets, gold will skyrocket, the dollar will surge, and your currency will suffer! So, shouldn't you take advantage of this wealth reshuffling opportunity to put your money into safe-haven assets, or even assets that will skyrocket? Not only can you save yourself, but you can even use it to transcend social classes!
If you want to learn an investment system that suits you, if you think investing is a skill you'll inevitably need to learn sooner or later, then you absolutely must quickly sign up for the Investment to Change Your Fate training camp via the first link in the video description! Okay everyone, today's content is packed with information! If you don't understand it, you can watch it a few more times —it's free anyway! And if you have different opinions, feel free to leave a comment and let's discuss it rationally together! I will continue to share free information about becoming rich, an entrepreneur, and an investor to achieve financial freedom every Sunday at 8:30 PM! If you don't want to miss it, remember to subscribe to my channel and turn on notifications! Then, selflessly share this video with the people around you! I sincerely wish all the brothers and sisters who like this video will achieve financial freedom soon! As long as you can find one or two useful sentences in today's content that can help you live a better life, I'll be satisfied! Okay, see you next week, bye!