Japan’s Yen Crisis Threatens to Trigger US Financial Meltdown

For decades, the global financial system relied on a simple deal. The United States took on more debt, and Japan bought much of it. This gave America cheap loans. Japan gained large cash reserves in US Treasury bonds. But that balance is now breaking. Japan’s yen is falling fast. This “yen rout” forces Japanese investors to sell their US bonds to raise cash at home. If they sell too many, US interest rates could spike. Higher rates would hurt American businesses, homeowners, and the government’s ability to borrow. The risk is a financial crisis that starts in Tokyo but hits Washington. The old assumption—that Japan will always cover America’s bills—is no longer safe.