Advice to Tokyo about that US debt weapon: Use at your own risk – Asia Times

Advice to Tokyo about that US debt weapon: Use at your own risk – Asia Times

Japan’s mountain may be a hill, but pulling the trigger may also result in China and Japan working together to counteract America’s position.

Japan holds more than$ 1 trillion in debt under the US Treasury&nbsp. Or, to put it another way, the US owes Japan a trillion dollars, which was borrowed to pay off America’s excessive saving. &nbsp, &nbsp,

Japan’s finance minister, Katsunobu Kato, and others, suggested last week that Tokyo may use its bank holdings and the danger to dump them as a weapon against Washington. This would be a part of approaching discussions regarding the recently imposed tariffs andnbsp on Japan and the majority of other countries, Donald Trump‘s, and various administrations.

Japan’s anger over being “tariffed” is understandable. Japan has been a reliable partner. And US officials consistently refer to their diplomatic ties as being “rock-solid,” the most significant bilateral relationship. &nbsp, &nbsp,

Therefore, it’s stingy to be treated like the People’s Republic of China ( PRC ), a nation that has killed well over half a million Americans with fentanyl over the past ten years or more.

However, Japan should be cautious about making actually veiled threats about its US loan, as opposed to acting on them. This is not a US-Japan winner-takes-all scenario.

And Tokyo needs the US more than America needs Japan, both physically and economically, despite its disapproval of the fact. If the PRC doesn’t help Japan, it will find itself under intolerable force.

The unending ring effect that no one wants

Nobody wants to think about it, but foreigners have a reputation for possible using America’s bill as a weapon.

The typical scenario is that China, which holds about$ 800 billion in US debt, dumps its T-bills on the market to hurt the Americans. Some people, however, thought Japan would start a chain of events that would render the US politically and economically incapable of responding to Taiwanese attacks on Japan, Taiwan, Taiwan, the Philippines, and/or Japan itself. &nbsp, &nbsp,

On February 12, 2025, the Japanese destroyer Kaga (center ) and American and French aircraft carriers will sail alongside one another in waters off the Philippines. Photo of the Japanese Maritime Self-Defense Force

Destroy debt, and the US-Japan ally will stop. The sell-off of the Treasury by Americans will be seen as betrayal in a large portion of the nation.

In addition, if Japan pulls the debt-related bill set, it will work with China to undermine US dominance. This might impair America’s ability to maintain its military reputation, which has stabilized relations with other countries and protected Japan.

Japan had to think about its steps in terms of trade negotiations no. What, according to one observer,” What Japanese errors will fill the Dragon with glee and pique the dragon’s hunger for conquerorship”? China is a potent acidic broker. Why do Japan want to “become an accelerant or a partner in its own fate”?

Misinterpreting the American feelings

One has the effect that Chinese officials and their social elite have a limited knowing of America and Americans. Their opinions are largely influenced by the ambassadors, think-tankers, scientists, and activists in Washington.

Japan is unable to comprehend how large swathes of the US have much faith in the state and little interest in international conflicts.

Warren Buffett presides the May 6 gathering of the 2023 Berkshire Hathaway. snapshot of the image

Warren Buffett made a number of remarks about Japan, company opportunities, and taxes at the current Berkshire Hathaway annual owners meet. He made a “free trade” statement that essentially supported the imprisonment of US work, and it was met with enthusiastic acclaim.

The investor-class split is clearly visible in the response, which is the so-called bridge country in middle America. To the Japanese who were tuned in, please note that the US investment category is not the US hero group. The top 10 % of Americans, who are wealthiest, own 88 % of assets. The next 40 %, in contrast, hold the last 12 %.

The middle 50 % are debt-owners, not stockholders. The recruiting offices for the government are also based there.

The pompous elite can no longer hold the peasant group to be a slave to their own devices. &nbsp,

No more being the “attending practitioner.”

Americans have adopted a post-World War I approach toward the world following the crisis of 20 years of body works, expended regional wealth, and lost opportunity fees. The globalists and neoliberals are in decline, in fact.

Many people are simply waiting for the bad people to infuse loyalty into their eyes. Particularly after Joe Biden, years of burning banners, and the age of toppling statues.

The Gulfstream-riders and the southern leaders are clueless when it comes to people outside their thin school, so the Japanese may become informed.

Threatening the people Japan depends on to defend it may think otherwise, but it won’t be well received by those who do so. &nbsp, &nbsp,

Don’t believe that? The ambassador from Japan may travel to Akron, Ohio, or Erie, Pennsylvania to give the local Rotary Clubs information. Consider the implied risk presented by US bill of trillions. The market will make the case that a US service member who dies while defending a nation where younger people don’t want to enlist in the military is worth far more than a trillion dollars.

Tokyo would be a better place to serve as a “attending doctors” to assist the nation in recovering from its agonizing spending woes in the past 25 years. It does provide support for America as the US rebuilds its military and manufacturing center.

If the individual returns, it will be appreciative and even more eager to defend Japan.

Former US minister and previous US Marine official Grant Newsham. When China Attacks: A Warning to America is his book, which he is the publisher of.

This content was republished with authority from JAPAN Forward.