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Yesterday I was listening to a podcast about the upcoming Sunday elections in Japan and the so-called "Reiwa rice crisis": rice prices have nearly doubled, increasing pressure on voters. This surge in food inflation is shaking bond markets: yields on Japanese government bonds with maturities of 10 to 30 years have reached multi-year highs, as investors fear that the cost of rice and new spending promises will translate into more debt.
If yields continue to rise, global bond markets could be destabilized; think of a domino effect that will spread to Treasuries, mortgages, and interest rates globally. This fragility reminds me why Bitcoin is important to own: it's outside that broken system. When governments mismanage basic goods like food and public finances, bonds falter and traditional savings shrink, but SATs continue to operate, free from political risk.
That's why holding Bitcoin provides peace of mind: a financial refuge when fiat systems falter.
Just read about this. It appears US is trying to make a deal to import rice but the Japanese government is trying to protect the rice farmers
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Trump wants Japan to import U.S. rice to cut trade deficit but consumers hate it—American rice ‘tastes awful. It lacks stickiness’
Ahahah!
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Stickiness is key, can't argue with that~~
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What Japan really needs is some Portuguese carolino rice, it sticks together nicely. That long-grain stuff? Not so much. Gotta know the difference! I eat rice almost every day, I know what I'm talking about! Ahahah
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I was also reading that on Japanese TV they're showing how to make good tasting rice with old rice...something crazy. The current government doesn't want to import rice from the US, and the opposition wants to open the borders...Sunday will be decisive.
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Japan ranks 6th in the world for food self sufficiency - pointing at this being a nothingburger. At the same time, if you look at the land area needed for self sufficiency the picture gets quite different, sending Japan way down at 157.81% needed for that. So it could be an extortion scheme on the part of the USA.
If yields continue to rise, global bond markets could be destabilized; think of a domino effect that will spread to Treasuries, mortgages, and interest rates globally.
The irony if something as seemingly trivial as rice set this kind of unravelling into motion would be poetic.
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The truth is, they had a lot of rice, and producers began producing rice for animals, not for human consumption. The government encouraged this, and now there's no rice for human consumption, coinciding with some pests or something like that, which also affected production.
On the other hand, Japan holds treasury bonds from most countries, so many large countries will be affected by the decision made on Sunday.
But it is truly a kind of tragicomedy that it is the rice that triggers this whole disaster.
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fascinating
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stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.