Well, that is true as long as the central bank, the issue with the currency, doesn’t itself own the bonds, and then the currency becomes backed by the rate debt in that currency, so they spiral down together. And as interest rates go up, the currency goes down. So there is nothing that the Bank of Japan can do to strengthen the yen, other than very fleeting attempts at selling dollars and buying yen back, which only helps for a few weeks or maybe a month or two at most. But you can see on the long-term chart of the yield of Japanese government bonds, as it goes up, the purchasing power of the yen goes down.

It goes down relative to the dollar, and that will continue until the entire Japanese Keynesian experiment from hell implodes, and that looks like it’s about to happen. And now it looks like it may actually happen. Before it does, though, because once Japan falls, everything goes with it. So before this actually happens, get your gold and silver at Miles Franklin. Use the link in the description below. Take the gold and silver that you have. Put it in, or some of it in, a dirty man’s safe, buried somewhere on your property. Use code endgame10 at checkout for 10% off.

It’s the lowest-tech way to store your gold. And in an endgame scenario, it should come in very helpful, as the grid might go down for a while, and you won’t be able to access the gold that you have digitally in some vault somewhere. I don’t think you’ll lose it all, but I think access to it will be down for a little bit when you will need money on hand for emergency purchases, not credit money. And check out the Patreon at patreon.com slash endgameinvestor, where we go into spiritual messages about money and politics and government.

The next video is going to be about the inherent unknowability of the economy, and why it must be that way in order for humans to survive. One hint is that if you know the day of your death, or you know what the prices of everything will be in the future, there is no reason that you would engage in any economic activity at all, so unknowability is an essential, which means that human action cannot be reduced to constants or mathematical equations, which is the entire point of econometrics, which is all crap.

Anyway, let’s go on with the slides and get into this Japan situation, because it’s getting really bad, or really good, depending on what you want to think about it. This is a chart I could jiggered from Trading Economics, which is a pretty good site, very organized, very easy to use. This is a chart of the Japanese government bond yield at 10 year, and the yen versus the dollar. You can see, if the blue line is going up, the blue line is the 10 year yield in the Japanese government bond. As that line goes up, bonds weaken, the price of bonds go down as the yield goes up.

You can see that these two charts have been loosely correlated since 2021. As the yield goes up, the yen weakens, not perfectly, it’s not a perfect correlation, but generally it is true, because the Bank of Japan owns more than half of the entire Japanese government bond market, so therefore, when bonds go down, when yield goes up, the assets backing the Japanese yen go down, and the purchasing power of the yen goes down with it. So if Japan raises interest rates, the yen goes down. If they lower interest rates, the yen goes down anyway, because it discourages savings even more.

So there’s nothing that can be done to save the yen at this point, especially not for a medium or a long-term way, but maybe short-term, you can sell some dollars and buy some yen back, and that does lead to these little scoops down in the yen dollar exchange rate that are very temporary. They do not last long, and it looks like this economic package that will be passed by Takaiichi and her liberal Japanese party soon is going to not do well for the yen. We’re already at 1.82. Now we’re going to zoom out and show the technical position here.

What is final resistance on the Japanese government bond yield? That is 2.013, hit in May 2006. We are now at 1.82 over here. We’re just below it. So what happens after this resistance is broken? This final resistance is broken? Well, the other side of this chart, it’s kind of scary. Its yields go all the way up to like 18% or something in 1980. So once this resistance is broken, Japanese bonds could collapse almost entirely or entirely, not immediately after, but once we’re in technical space, anything can happen and algorithms don’t know what to do.

I wanted to share this one paragraph from Bloomberg, I think it’s indicated by Yahoo, about the endgame-y nature of this whole debacle here involving Takaiichi’s budget. Market euphoria ends for Takaiichi as yen Japan bonds sink. This is from Thursday, November 20th, which is yesterday on my calendar. But anyway, back to this paragraph over here. If Takaiichi loses policy credibility, then investors will start selling all of the assets, said Mark Dowding, Chief Investment Officer at RBC, Blu-ray Asset Management. Step back and then at once and sell, sell. How underwater is the Bank of Japan? Well, we don’t know exactly because I can’t read Japanese and the Japanese government, the Bank of Japan site is pretty opaque.

But anyway, we do have a hint here. We have, in blue is the Japanese government bond yield at 10 years. The higher this goes, the lower the bond prices are. So you can see this red line is the Japan-ken-ben-bal-shi. That’s short for Japan Central Bank Balance Sheet. But this sounds better, Japan-sen-ben-bal-shi. So anyway, the red line, this is the balance sheet, this is 2013-2014 when Abenomics came into full bloom and they started increasing their balance sheet and buying the entire bond market. Not entire, but half of it. So I don’t want to say the entire half of the bond market.

They started buying half the bond market, accumulating it up to here and they stopped buying it around here. 2021-2022, exactly when that was, I don’t remember. But anyway, as they’re increasing their bond holdings, you can see what is happening to the yield. Around here, the yield bottom, this is 2016 or something, 2017 maybe. So from here, so from about this point over here in 2016-2017, one of those years, you can see the yield starts to rise as the accumulation of bonds rises faster and faster and faster. So all of this over here, this entire accumulation of bonds from 2016 to now is all underwater because the yield when they were accumulating this stuff was down here at 0.0 something, whatever it was, maybe half a percent.

Now it’s at 1.8%. So the price of bonds has about maybe been cut by two-thirds as the yields has tripled. So yeah, the Bank of Japan is in serious negative equity here. The Bank of Japan is bleeding losses and a losing central bank eventually destroys the purchasing power of the currency, which is why the yen is going down. Now one chart here could be a saving grace for the Japanese asset collectors, right? The Japanese stock is the Nikkei 225, also from Trading Economics. You can see here, here is the high in 1990.

The all-time high that was until then. We’re way above that now. Look at that. Oh, that’s amazing. The Japanese stockholders are doing pretty well, aren’t they? Well, let’s go to this next chart and we’ll see if it’s not quite true. Why is that? Because this is Japanese stocks from that 1990 high over here. Where was that high? That was about 90 ounces of gold to buy the Nikkei. Now, where are we? We’re at 11.88. That means that Japanese stocks, as measured by the Nikkei 225, are down 90% versus money since 1990.

That’s a lot of 90s. A high of 90, down 90% since 1990. Is that like a code? Is it like a numerology thing? It could be. If you’re a numerologist, put a comment in the description. Put a… Don’t put a comment in the description. You can’t do that. Put a comment below about what you think 90-90-90 means. I think it means I don’t really care. Anyway, do you remember that episode in Britain, in the UK, with Liz Trust, and the mini budget, and Kowansi, Kowabriblari, whatever his name was, that had that whole budget thing, and they could get out of office because the entire market had a big diarrhea or constipation, however you wanted to find it, and she eventually got kicked out of office by the market itself? Well, that could end up happening in Japan if the bond market and the yen go down together after she passes her gargantuan abenomics money printing inflationary budget.

So watch out. This thing is already at critical, and something is going to buckle pretty soon. We see this in Bubbles of Nothing, which I’m going to show one chart. If you’ve been following me on X, I’ve been losing my mind a little bit over Twitter. I have a feeling that it’s almost over, but I just wanted to explain the principles here. Let’s go to the chart for a second. This is Bitcoin priced in gold. We are down below the 200-week moving average for the first time since 2022 over here. That was the last time we broke through the red line.

We’re at 21 ounces of gold, and now the title here is Nothing. Price in gold falls to 21 ounces. Now, people say, how can Bitcoin be nothing? It’s information. What is a dollar? Well, here’s the definition. Gold is money. The dollar is a liability unit of the Federal Reserve, which owns assets on its balance sheet. Most of those assets are inflated nothing, including all of the debt, the mortgage-backed securities and the Treasury debt. It’s not nothing yet, but it will become nothing. So then, what is a dollar? The dollar is a liability of all the assets on the Fed’s balance sheet, which includes a gold certificate account, which is a thing, represents gold, that is held by the Treasury.

Yes, the Fed doesn’t own it directly, which could end up being nothing in an endgame scenario. But right now, the dollar does represent assets that actually exist on a balance sheet somewhere, including the building of the bank, the Federal Reserve itself. That is what a dollar is. It represents something. Bitcoin represents what? Bitcoin is information that represents ownership, fractions of Bitcoin. It’s a circular argument. Bitcoin represents ownership of Bitcoin, represents ownership of Bitcoin, and keeps going, going, going. It is literally nothing because there’s nothing that it represents. It’s not a liability of anything. It’s just nothing.

The dollar is still something. It’s very inflated, and it will become worthless. But right now, it is still something. Money has to be something. It cannot be nothing. And yes, people can value nothing for a while. It is possible. Humans are that dumb, or they are that greedy. They’re so greedy that they can think that nothing can make them rich. What have you done, Derek? Nothing! You’ve done nothing! Nothing! He believes in nothing. He believes in nothing, LaBoltke, nothing. And as long as somebody else is willing to buy nothing, that can be true.

But it doesn’t last forever. Because economics is the study of scarcity and choice. It is not the study of how nothing can acquire something. Money is not an imaginary point system. Money is a thing. It can be represented by a point system that represents a thing, as in the dollar represents a thing, but Bitcoin represents nothing but Bitcoin. Therefore, it is nothing. When bubbles pop, people stop valuing nothing, and they begin to value something. That is why gold is the anti-bubble. As the bubble deflates, all the purchasing power that was in the bubble goes into money itself.

As the valuation from nothing to something becomes extreme. This is Ralph here, the endgame investor. Check out the Patreon at patreon.com slash endgameinvestor. And check out the endgame investor on Substack, where you’ll get front row tickets to the end of the financial universe, as we have known it since 1933. [tr:trw].

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.