Jake Claver

So anybody and everybody just borrowed money for free, basically, swapped it for dollars or euros or whatever else, put it to work in markets.

And when that trade no longer makes sense, they're not able to make the spread to be able to service the debt.

As they've raised interest rates, you started to see this unwind in August of 2024.

The S&P was down 13% in a single day.

Jeez.

And that was only about $2 trillion that got unwound.

There's tens of trillions of dollars, somewhere between $10 and $14 trillion currently out on that trade.

So as they raise interest rates and the U.S.

lowers interest rates, which I think they may do here in the near term, you're going to see a rotation out of U.S.

treasuries into Japanese treasuries, and all of that money is going to be pulled from markets to repay those loans.

You've seen Warren Buffett – or not Warren Buffett, Berkshire Hathaway.

They've invested a bunch in yen so that they can be a lender in that situation.

The Fed has also stacked a bunch of yen to be able to support their currency, but also –

In a liquidity crisis, they can be a lender.

So they all see this coming.

And now that we've had this rate of Hormuz shut down, I called that about eight months, a year before it happened.

You predicted that?

Yeah.

Oh my gosh.

That's legendary.