I think the recent Japanese debt situation has reached a truly serious level. Looking at the figure of 235% of GDP, it’s the highest debt ratio among developed countries, and this is materializing in the scale of 1,324 trillion yen.

What’s even more surprising is the Bank of Japan’s response. They are massively divesting from exchange-traded funds worth 79 trillion yen, which is really rare for a major central bank to take such action. This move is causing significant ripple effects in the global financial markets.

As the 10-year government bond yield exceeds 1.6%, Japan’s debt servicing costs are also continuing to rise. It’s safe to say this is the start of a vicious cycle. Interestingly, the U.S. is in a similar situation. With debt exceeding $37 trillion, it’s over 120% of GDP.

As this situation persists, investor sentiment is definitely changing. As confidence in paper money wavers, funds are flowing into alternative assets like Bitcoin and gold. The Japanese debt crisis is actually serving as a real-world example of the risks associated with excessive borrowing for developed countries.