🚨 I’ll be live at 11:30 AM ET with Jeffry Turnmire for Market Masters🚨
 Both Jeffry and I have significant positions in Tesla so we’ll cover earnings today, including some stats I have from the past decade of reports and more [tap to join us]
There’s this geopolitical chatter making the rounds right now that Japan might dump U.S. Treasurys.
Some folks are nervous. Headlines are spinning. But me? I say let it.
Trying to support Treasury prices against unlimited Japanese selling is impossible. You can’t stand in front of a fire hose and expect to stay dry.
If Japan wants to unload Treasurys, let it. They’ll be back, because at the end of the day they buy U.S. debt for one simple reason — it’s the only thing worth owning at scale.
The Fed shouldn’t waste resources fighting a move Japan can’t sustain anyway.
Better to keep their powder dry and stay focused on their own battlefield.
Japan’s Real Problem
Japan is stuck in the exact opposite situation it wanted.
It spent years trying to push the yen lower to boost exports, but its export engine is barely functioning. A weaker yen was supposed to revive an economy built on selling cars and electronics to the world, but that machine is sputtering.
Now it’s dealing with a currency doing the wrong thing at the wrong time, and it’s boxed in.
That’s what happens when a country kicks the can down the road for decades.
Instead of restructuring, Japan printed money and papered over their issues. So now it’s facing larger problems and fewer tools.
And when its system gets squeezed, it’ll reach for the same tool again — more printing.
If Japan were to dump Treasurys in any meaningful way, it would ripple into U.S. markets by pushing rates higher and adding upward pressure on inflation.
But Japan knows that, and that’s exactly why it won’t take it too far.
It can’t afford the blowback.
Why This Matters for Gold
Here’s where this becomes a trader’s story.
When Japan prints more money, central banks don’t just sit on the new liquidity — it hedges. And its hedge of choice is gold.
That dynamic is what’s powering the gold trade right now.
Not headlines, not panic, but structural demand from large players who have no good alternatives.
Silver tags along in its own way, but it’s crucial to remember the historical ratio here.
Gold is roughly 15 times more rare than silver, and that scarcity matters when demand surges at the institutional level.
When money moves into hard assets for protection, gold is the centerpiece and silver is the high-beta cousin. Japan’s moves only strengthen that trend.
The more it prints, the more it hedges. The more it hedges, the stronger the bid under gold. It’s a loop that doesn’t resolve quickly.
So when you see stories about Japan threatening to dump Treasurys, don’t panic. Understand the mechanics.
It isn’t walking away from U.S. debt — it can’t.
And every step it takes to stabilize its own system reinforces the long-term case for owning gold.
Trade well,
Jack Carter
Jack Carter Trading
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PS. I Can’t Wait to Jump Into the Zoom Room for the Urgent Roundtable
Finally, the Roundtable Zoom room is almost open!
This isn’t a routine session or business as usual.
In just a short while, the market heads into a rare setup that forces decisions fast.
At 2 p.m. ET, Fed Chair Jerome Powell will speak at the Fed meeting.
The way he frames policy could reshape expectations across the entire market.
Then, after the closing bell, Tesla reports earnings.
Those two events landing within hours of each other are not something you casually react to.
Once sentiment shifts, it moves quickly, and it doesn’t wait.
I won’t promise future returns or protection from losses,
What you are about to hear is how we are thinking about this setup before it hits.
How policy tone and a major earnings report can collide.
And how to stay ahead instead of scrambling afterward.
Are you ready for the action?
