Japan Is Financing the AI and Macro Supercycle (or Bubble). Everyone Thinks Is American.

Today, I want to look into 2 trades holding the global macro economy together right now.

The first is the Japan carry trade.
The second is the AI capex supercycle.

They look unrelated on the surface. One is about the yen, the BOJ, and sovereign debt sustainability. The other is about GPUs, data centers, power, and the next computing platform. But in practice, they are part of the same market structure.

Both depend on one assumption, where liquidity remains orderly

Japan has kept interest rates extremely low for years.

https://x.com/arndxt_xo/status/2054129770133356645

https://threadingontheedge.substack.com/p/japan-is-financing-the-ai-and-macro