The Yen Carry Trade Explained, Digital Settlement Rails, and the Case for Metals

In this appearance on the Michael Jaco Show, Dr. Kirk Elliott explains the Japanese yen carry trade and why he views its unwinding as a turning point for global markets. He traces how borrowing yen at near zero interest since 1999 and reinvesting it in higher yielding sovereign debt helped finance decades of global growth, and how that arrangement has come under strain. He reviews the US Treasury's roughly $90 billion intervention to support the yen, funded by selling European sovereign debt, and the concern behind it: Japan ranks among the largest foreign holders of US Treasuries, and sales on that scale would pressure bond prices while roughly $9 trillion of the $39 trillion federal debt must be refinanced this year. He also discusses digital settlement systems that let countries transact outside the dollar, silver's industrial demand from electronics and AI, and invites viewers to schedule a consultation with the KEPM team.