US Economy on the verge of Collapse: Japan Final Nail in the Coffin of US Dollar

Japan has been significantly cutting back on its U.S. Treasury holdings, marking a notable change in its investment approach. By May 2024, Japan’s holdings had fallen to $ trillion, the lowest level since January 2020, representing an 18.5% year-over-year decline. Several factors contribute to this reduction. First, the increasing yields on Japanese government bonds have made domestic investments more appealing to Japanese investors. Additionally, the Federal Reserve’s recent rate hikes have raised hedging costs for foreign investors, thereby diminishing the attractiveness of U.S. Treasuries. This strategic shift underscores Japan’s evolving focus on more favorable investment opportunities within its own market.