$400Bn is nothing in the USA, honestly. Japan could fire sale it all, which it won’t, and in the worst case American actors will buy it all up and the market blip will be over in a single day. Someone will make good money on short sales, though.
Good. Donald Biden (or Joe Trump) have turned the USD and US debt into a dumpster fire. The sooner other countries dump it the better their finances will be.
They’d never do it if it’d hurt USA so badly. They rely strongly on them on many fields, including military support
Can someone ELI5?
Japanese investors hold a large chunk of US bonds. With the yen rallying against the dollar and US rates being high, they’re looking to dump their bonds because otherwise they’re going to start losing money on them.
Oh and the implication is that that could further devalue US bonds. Got ya, thanks.
