🇺🇸🇯🇵 One major difference between Japan and the U.S. is this: Japan runs a large capital account surplus and owns many global assets, including being one of the largest foreign holders of U.S. Treasuries. As the U.S. dollar depreciates relative to other currencies, gold, and Bitcoin, Japan will likely need to sell some of these holdings. In contrast, the U.S. has a massive 7% trade deficit on top of its fiscal deficit—but it continues to benefit from holding the world’s reserve currency status. Dedollarization is the strategy foreign central banks are using to divide the world into economic blocs—and ironically, the U.S.-based financial-industrial complex is facilitating this shift as well. This has huge implications on those pegging their currencies to the dollar as they have to sell gold reserves or US treasuries to maintain the peg. They won’t do that forever. Buckle up.