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Global Debt Crisis Erupts Threatening Massive US Selloff

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by ITM Trading
Tuesday, Sep 16, 2025 - 20:39

Japan just fired the first shot in a new phase of the global debt crisis.

After decades of propping up global markets, the Bank of Japan is stepping back—and their long-term bond yields are spiking to levels not seen since the ‘90s. That’s bad news for the U.S., because Japan is our biggest foreign creditor.

As Japanese yields rise, their appetite for U.S. Treasuries collapses. That’s already forcing higher rates here at home—just as Washington faces trillions in maturing debt, rising inflation, and a weakening labor market.

This isn’t a one-off. It’s a signal.

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