Tag Archives: US treasury bonds

Big in Japan

It is not a song by Alphaville, they did that in 1983 I believe. But a few months ago (May 4th, at https://lawlordtobe.com/2025/05/04/the-nature-of-things/) I raised a setting that gave us “Japanese finance minister says selling U.S. bonds a “card on the table”’ with the yowza response “Japanese Finance Minister Katsunobu Kato said Friday that the country’s $1.13 trillion in Treasury holdings were a “card on the table” in trade talks, The Associated Press reported.” Talking about the tiger that feeds himself with your hand, and the added text becomes “Japan is one of the five largest U.S. trading partners, as well as a rock-solid ally in the region, so there was some surprise when the U.S. hit the country with a 24% reciprocal tariff in early April.”” I had Axios and a few other sources. And that was all there was to it, the news simmered down and the news was forgotten, except that is why I have my blog. I don’t tend to forget things. So when I got the news a few days ago I saw a YouTube video that Japan was dumps its US bonds. A fear that many have. And I started to seek that news from more reputable sources. Most had nothing, but (at https://medium.com/@nationalgoldgroup/japan-is-dumping-us-debt-and-americans-will-feel-it-31ec6a1f3870) But Medium gave us ‘Japan Is Dumping US Debt — And Americans Will Feel It’ but that is all there is. Now, I would be hesitant to give this out, especially as the Financial Times and the WSJ have nothing on this, even the Japanese Times (an English version) has nothing. So what gives? Are these doom speakers? Because that news would be grim for America. They give us “That’s basically what Japan has been doing with US Treasuries since the 1990s. They’d print Yen at 0% interest rates (basically free money), convert it to dollars, and buy up American debt in the form of US Treasuries. Then they’d sit back and collect the interest payments. This strategy pumped trillions of dollars into global markets over the years.

And more importantly, this arrangement made everything in America artificially cheap.” But as we see the next bit “suddenly, the cheat code stopped working. The math that made the carry trade profitable for 30 years just flipped upside down. Japanese pension funds looked at their spreadsheets and realized they were losing money on US Treasuries. So they started selling. Billions of dollars worth. Every single day. Imagine you’ve been lending money to a friend for years, making a nice return. Then one day, you realize you could make better returns just keeping the money in your own savings account. What would you do? You’d ask for your money back.” So, is this true? America could ask Mark Carney as he is an excellent economist, but there is a chance he is not taking their calls. What surprises me is that all the media is silent on it. But 2 days after my article, on May 6th we got “If Japan sold massive amounts of US debt, it would very likely spark a massive Treasury selloff. Treasury rates would in turn sharply increase, making it more expensive for Washington to borrow and freaking out investors along the way” (source: CNN) but at present, these YouTube and their allotment of ‘financial show’ jokers are seemingly doom speaking, because as I see it, this is all it is. The problem is that doom speakers tend to make others jittery and China has over $700 billon of those puppies. The Medium ‘knowledge’ comes from the National Gold Group and I am not setting any value on that, but the fact that the ‘set’ financial newspapers (Guardian, Wall Street Journal, Financial Times) have nothing on this, they do not even debunk that news. So I am looking at the playing field with a dim look (as I have an absent economic degree). And I am not joining any doomsayer on their doom binge. But YouTube has a few more sources and they are all dancing around the setting, like they ant to refer to news they had given, but they are not giving it. As I see it, if it isn’t in the newspaper (online or not) it doesn’t exist, but the news is a little unsettling, because if Japan goes, so does China soon thereafter and America has 2 trillion in US treasury bonds that no one wants. So, what do you think that does to the American economy? I reckon that China likes the idea, but it doesn’t want to start it and that is where Japan comes in. Is it real? I honestly do not know, but I do know that after the shenanigans America did to others, there is a hidden glimmer of fun to several people should this happen. So I have concerns on this, but I am adamant in saying that there is no verifiable setting that this is actually happening at present. And I feel strongly about giving this additional message.

I will report on happening, not create fictive settings that start something.

Have a great day, it’s fish day here now. I might go for some today. So, make sure you find a reputable source if you are going to be panic stricken because anything else might cost you a lot more than you think and in case of doubt, Ask the former Marky Mark of the British Bank (at +1-613-957-5555) he knows a lot more about this than I do.

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All dressed up

Yup, that is an old expression, I heard it somewhere in the 80’s and if you know, you know. If not, you might figure it out during this article. The setting has been revised before, but now (at https://www.travelandtourworld.com/news/article/north-carolina-and-oregon-unite-with-florida-new-york-nevada-arizona-california-alaska-as-canadian-travel-to-the-us-plunges-this-april-amid-political-backlash-and-tourism-boycott/) we get a more direct setting. We are told ‘North Carolina and Oregon Unite with Florida, New York, Nevada, Arizona, California, Alaska as Canadian Travel to the US Plunges This April Amid Political Backlash and Tourism Boycott’ it seems trivial and that site is, but it is merely one side of this. We are given “Canadian travel to the United States has plunged this April as North Carolina and Oregon unite with Florida, New York, Nevada, Arizona, California, and Alaska in reporting steep declines in visitor numbers from their northern neighbor—an alarming shift fueled by mounting political backlash, a growing tourism boycott movement, and rising disillusionment among Canadian travelers over the current state of U.S. affairs”, as well as “Canadians are now increasingly choosing alternative destinations, citing concerns over the political climate, cultural discomfort, safety perceptions, and dissatisfaction with immigration experiences.” And this is merely the start. Travel Tour World gives assisting data. We are given “According to official data, land travel from Canada to the U.S. dropped by 35.2% in April 2025 compared to the same time last year, while air travel declined 19.9%, marking one of the most significant cross-border travel retreats in recent memory” And it gets to be worse, for that we look towards the story (at https://www.cubaenmiami.com/en/expertos-temen-por-las-perdidas-economicas-que-pueden-traer-la-reciente-disminucion-del-numero-de-turistas-internacionales-en-estados-unidos/) there we get “According to a report by Oxford Economics, unfavorable perceptions regarding trade and immigration policies are causing international tourists to choose other destinations, which could result in an $8.5 billion drop in foreign visitor spending in the United States this year. The decline in travel, which represents a roughly 5% drop compared to the previous year, is due to a decrease in foot traffic. According to Aran Ryan, head of industry research at Tourism Economics, an affiliate of Oxford Economics, international visits to the United States are expected to decline by nearly 9% this year, according to a report released last week.” This is not all, in addition we see “The United States could experience a loss of $21 billion in tourism-related revenue this year if current trends continue, according to estimates by the U.S. Travel Association. According to the trade group, every 1% reduction in international tourist spending represents an annual loss of $1.8 billion for the U.S. economy. Furthermore, experts indicated that a strong U.S. dollar could be driving away international visitors.” Even though only Canada is ‘sifted’ out, the European losses could be close to equally large. I saw this yesterday in a YouTube video on the Epic Universe. The literal quote was “There is no-one here” and this is in the opening month of one of the most desirable theme parks I have ever seen. The damage could be a little bigger than the news we are getting. I saw two restaurants where little to no people are seen and in one case they were the only customer. This is a sight I have never have seen before in any theme parks and this one looks a lot better then most I ever saw with my own eyes. I don’t wish this on anyone and where are the people going? Well, my bet is that Abu Dhabi in the UAE on Yas Island will be raking in the cash. The people decided on another place and as Canada, Europe, Australia and New Zealand decide to seek greener grounds the sands of the United Arab Emirates might be the greenest grass of all. Even as we get one source giving us that “Walt Disney secures future of Euro Disney with €1bn refinancing”, I am drawn to the setting that this is not the destination of many who abandoned the idea of getting theme park rushes in America. I guessed that these people might be going towards Tokyo and its Universal, but the drop of 4% gives me pause to dig deeper there and I am considering that most went to the UAE and the numbers from Gulf Business (kinda) prove me correctly with “International visits to the theme parks also saw significant growth, with a 40 per cent, rise, led by a substantial increase from key markets, including India, China, the UK and Russia” and there I wonder if they investigated the stream of Canadian and European visitors. Yet 40% increase is not nothing, it is huge, especially as America is looking to a drop of well over $21,000,000,000 in business and that is not including all the bed and breakfast and fast food locations that usually see a much larger interest during these days. The tariff and 51st state mentions will be taking its toll on America a lot sooner than they think. I reckon that European (Australians too) will decide that Canada is a much better place to be than America, as such this coming winter Aspen will dealing with a zero minutes queue time at the slopes. This means that America is looking towards a two dreadful seasons, summer and winter. We can speculate how large this becomes, but there is no real data on this and the bulk of the people will not see these results until springtime 2026. Anything earlier is loaded with inaccuracies as the data they have been training on was never captured to the degree it needed and some form of forecasting analysis (the process of using historical data, trends, and statistical methods to predict future outcomes) as it is based on achieved data and this has never happened before in America going back to the before the 80’s, as such there is no forecasting settings and it needs to be done on actual data captured now, and these results are not looking good. Even if it is a ‘mere’ 21 billion, over 8-9 states the impact is nothing short of disastrous and America was never in that great a shape anyway. This is propagated by the real time risk of two nations dumping their bonds before they have the value of toilet paper (yes, China and Japan) and even whilst Japan has the largest amount and they are hanging on, they do know that if China is pushed to dumping their bonds, Japan will be racing to get there as son as possible, merely to safe some of their value. Considering the escalations that the BBC reported on a mere 10 hours ago, there is a chance (a small one) that China will respond by dumping the US Treasury bonds they have and that is pretty much a sequential set in ending the American economy. This America Administration will not be able to recover from that and whilst the Chinese portfolio is set to US$765.4 billion, which is 20 billion than a month ago. They might be gambling that Japan tries to drop their $1.13 trillion ($1,300,000,000,000) bond, especially as their own debt is now a debt-to-GDP at 260% and the Bank of Japan already owning more than half of outstanding Japanese government bonds, as it seems (according to people with the economic knowledge and foresight) that Japan is boxed in. Should China dump their bonds they could gain America and Japan at the same time. A sight never seen before in our history. So what does this have to do with tourism? Everything. You see if America cannot pay its debts, America becomes the third world country no one wants to visit and that makes it a nasty place within months. America has around 22 million millionaires. I recon that at least 15 million will get out in time, the rest is not ‘rich’ enough and those with a jet (around 15,000 of them) will go to any country that will take them and they will move fast. The rest? That is anyones guess. It reminds me of that B-movie where the wealthy and refuge in a theme park as it is the only one with enough food and security to make it last. But that is an overly dark (and unrealistic) setting. What is a given that these people will seek a safer haven, because America won’t be one for decades to come. 

Still, the first setting is tourism and that setting is under increasing pressures. And as I personally see it, it wasn’t President Trump who set this of, it was the short sighted views (my personal take on this) of Governor Ronald Dion DeSantis who chased away $1,000,000,000 in investment settings in Florida, that was the start. We saw a whole lot of anti woke and anti LGTBQ settings making Europeans (and likely Canadians) weary of safety issues in Florida, which would have impacted both Disney, Universal and Warner Brothers. That was as I saw it the start and the tariffs merely escalated that setting. The damage would have been horrific if Warner Brothers Abu Dhabi had started their Harry Potter park expansion a year earlier, yet as it stands it is now kinda set for a late 2026 opening. And as Disney is coming there too the bad news for Florida keeps on adding to the larger picture. That and as the UAE is one of the safest places in the world, the appeal of the UAE is easily spotted. That is besides the fact that Abu Dhabi has 4 theme parts and one of the largest luxurious malls in the world (right behind the Dubai Mall). The additional setting that you can travel from Abu Dhabi to Dubai in a mere 30 minutes by train, the appeal is close to complete. The zero tax setting that the UAE offers is a mere cherry on their yummy pie.

That is what American tourism was facing all along and now with the tariff wars the escalations are debilitating whatever was left of American tourism future, because if you are willing to fly to Florida, the idea that flying to the UAE for close to the same amount would be a desiring call for any tourist that wants something new.  So if you want to dress up, you might as well try an Emirati Kandura, looking good and looking different, having that real vacation feeling that you might never have had before.

Have a great day and consider where you might want to go and where you could go, especially for those who are sick of Americans referring to Canada as the 51st state and the Europeans who are not too happy on America annexing 2.166 million km².

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The thin ice

We all know the expression, no skating on thin ice. Yet when you think of it, when was the last time you saw thin ice? We all hear it, but when did you yourself, with your own eyes see a case of thin ice? We tend to think it is a danger avoided, but when no one sees that danger, is it a danger? Don’t get me wrong, I am not doubting that thin ice exists, before ice is thick enough to carry our weights it will be thin ice. A lot of thin ice seeing is assumption. We see ice and we see no one else skating on it, as such we take it for granted that THAT part is thin ice. Hold on to that thought because I am about to give light to two very different articles.

Arab News
The first was Arab News (at https://www.arabnews.com/node/2395561/business-economy) where we see ‘Saudi banks’ residential loans surge in August as apartments gain prominence’. This article seems nice, but when you read it we are given two parts. The first one is “Mortgage lending to houses, apartments and lands rose to SR7.14 billion in August from SR5.43 billion in July” This is a 30% rise in a month and that is huge. Now there are other factors on play like trends. How was that last year versus this year and a few other things, but 30% matters. In addition we are given “The increase in apartment financing by Saudi banks compared to house financing is due to the increase in prices of houses and private villas compared to the prices of apartments, which has made villas and houses unaffordable to average-income individuals,” and this comes from Talat Zaki Hafiz, an economist and financial analyst. There is the added “Notably, financing of houses still dominates Saudi banks’ new residential mortgage landscape, constituting a 70 percent share in August. While apartments comprised 25 percent of the pie, land financing held the remaining 5 percent.” It seems that the Saudi banks have things well in hand. We can also infer that people are in a better state, the Kingdom of Saudi Arabia is in a better state and the people are setting their lives accordingly. Now, this is speculative, but if the economy was really bad real estate would not skyrocket by 30%, so something is going right there. 

The Guardian
The guardian gives us a very different story in the UK (at https://www.theguardian.com/business/2023/oct/21/mortgage-debts-and-bust-firms-put-uk-banks-profits-under-pressure) there we are given ‘Mortgage debts and bust firms put UK banks’ profits under pressure’. Now we can argue that the UK has twice the amount of people and that is true, yet as I personally see it, banking is banking. If a bank has a certain margin, having twice that margin implies that bank is twice as rich. Now, I get it, it is not that simple, but read me out.

We are given “Bosses watched in horror as a mini-banking crash led to the collapse of a string of US lenders including Silicon Valley Bank (SVB), and later Switzerland’s largest lender, Credit Suisse.” Here we have a problem, what I speculated all along and I saw one part revealed in April was “SVB had few traditional banking uses for the cash that piled up, it instead invested $91 billion in Treasury bonds and U.S. government agency mortgage-backed securities between 2020 and 2021. This brought SVB’s investments to roughly half its total assets.” You see, this was stupid greed and I warned in advance of it, more than once actually and the Guardian does not mention treasury bonds once, there is a whole engine spinning news and misdirecting news all over the media. The speculative setting is that owners of US treasury bonds will auto renew or lose a lot of money, so what would you do if you were the idiot relying on a 2% payday of $91,000,000,000? That amounts to a $1.87 billion payday. I would do the same thing, but these banks used their clients money to hedge that bet and the US government was eager to cater to that level of greed. I reckon that this is why Janet Yellen kept a close eye on this. In addition, I wonder how deep Credit Suisse was involved. 

Yet the setting is housing and “By July, the former Ukip leader Nigel Farage went to war with NatWest over plans to close his accounts at its private bank, Coutts.” Really? One account has that much impact? You see ‘Coutts bank boss quits in row over Nigel Farage’s canceled account’ some might see this as a joke, but for Peter Flavel the boss in question it is not a joke. There is something wrong with banking and banks all over the west. Don’t ask me what, but all these events are part of a larger problem, a problem that involves stake holders blending the message for banks and as I personally see it, the Guardian has been catering to these stake holders. It is highly speculative but even as this truth is given “Speaking to broadcasters Thursday, Prime Minister Rishi Sunak said it “wasn’t right for people to be deprived of basic services like banking because of their views.” I think it wasn’t the views (alone). I reckon that some views opposing the current need is a larger setting and people like Farage could be able to spot that in the documentation handed to them, moreover certain banks have been skating on the thin ice for too long and at some point someone will sink through the ice. That is the danger of the thin ice. For the longest time the thin ice was an urban myth at best, because we never aw cases. But the British banks are in a spot of bother and people like Nigel Farage would shine a big light on that problem, better to get rid of these people and when banks do that, when banks do that to politically A-listers, how much trouble are they really in. You see in March 12th (at https://lawlordtobe.com/2023/03/12/i-honestly-dont-get-it/) I raised a few questions regarding bonds and the eager beavers in the media never looked at that part, not the Times, not the Guardian, not any respectable newspaper as I personally see it. So why not? What trouble is America trying to pass over thin ice? What are we not told and isn’t that the duty of banks to inform their customers? I reckon that Saudi Banks are doing a lot better because they do not cater to anything else but their goals and the goals of THEIR customers. I could be wrong, but considering that we are left in the dark for over 6 months, all whilst Saudi banks are doing 30% better in a month implies something. It implies that they are doing something right.

 Enjoy the last day of the weekend, Monday is soon here, here it will arrive in less than 300 minutes.

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