Japan Just DESTROYED The U.S. Dollar – The End of An Empire | Money History

For decades, Japan has been the silent force holding the U.S. Dollar together. In this Money History episode, we expose how Japan became America’s largest creditor, why it bankrolled U.S. debt for over fifty years, and how its sudden reversal is now triggering the most dangerous financial chain reaction of our lifetime. Through the lens of Money History, we uncover the hidden mechanics of the Yen Carry Trade — a multi-trillion-dollar liquidity engine that quietly inflated U.S. stocks, bonds, housing, and government deficits. What looked like American prosperity was, in reality, borrowed stability engineered in Tokyo. This Money History breakdown reveals why the Bank of Japan’s 2025 policy shift is not just a rate hike, but the violent unwinding of global leverage. As Japan stops suppressing the Yen and begins selling U.S. Treasuries, margin calls cascade through hedge funds, pension funds, and banks — turning cheap money into forced liquidation. In this Money History case study, we explain how Japan’s bond sell-off exposes hundreds of billions in unrealized losses inside the U.S. banking system, why Treasury yields spike when foreign buyers exit, and how financial repression becomes the government’s final tool once external lenders disappear. This Money History investigation shows why the end of Japan’s subsidy marks the beginning of the Dollar’s real test. When the world’s largest lender walks away, inflation comes home, asset prices reprice, and the illusion of monetary control collapses — not by politics, but by math.