Zaid

Is this like another Liz trust situation?

Yeah.

Can you kind of walk through why Japan is so important?

What's going on over there?

And how does it play into everything that's happening in the economy in the world right now?

I feel like every time the word yen carry trade is a headline on an article, it's bad news, right?

Because this happened like a year and a half ago or something where like the yen carry trade just caused a massive sell-off at the stock market.

So I guess the problem – I guess the issue that's happening right now is that because of this prime minister in Japan who's –

you know, who's pushing for all these tax cuts, that's causing a budget deficit for the government, right?

And then in order to fund that deficit, they have to borrow more money, which I guess, I'm trying to understand, that's kind of what's going on right here.

The bond market in Japan doesn't like the fact that there's going to be a budget deficit, this budget proposal by the prime minister.

That's pushing their yields up, which is kind of having a ripple effect

through all the markets in the world, including the U.S.

bond market, U.S.

stock market, because of its ties to everything.

So if the yen carry trade closes, that could put upward pressure on the U.S.

bond market, which we're already starting to see happen.

And that could make borrowing more expensive, not just for the U.S.

government, but for everyday Americans like me and you.

It's going to increase mortgage rates, credit card rates, all that stuff.