Japan has launched a BRAHMASTRA on the USA. Nobody is talking about it.
20th January 2026
Japan has launched a BRAHMASTRA on the USA. Nobody is talking about it.
Dear Fellow Travellers,
Namaste! When we talk about the world market Teji – we look at the USA and FED rates. We also look at the magnificent 7 companies of the USA to take cues in technological developments. But the TRUTH is something different. Today we will share the hidden forces behind the world market Teji and how their policy changes will impact the world market in the coming time.
Peace loving Japan is about to kill the USA and create a major havoc in the market. Nobody is talking about it.
How did the game start in 1999?
The Bank of Japan reduced its call rate to ZERO. This was the 1st experiment in the MONETARY policy with Zero rate.
Japanese savers, facing zero returns on their deposits, began searching for yield. Japanese institutions—pension funds managing the retirements of 128 million people, life insurance companies holding the savings of generations, regional banks serving communities across the archipelago—faced an existential choice.
So, they started investing outside JAPAN. And in doing so, they became the world’s liquidity providers of last resort.
The mechanism was elegant in its simplicity. Borrow yen at near-zero rates. Convert those yen into dollars, euros, pounds, or emerging market currencies. Invest in assets yielding 3%, 4%, 5%, or more. Pocket the spread. The trade was so obvious, so riskless in appearance, that it attracted not just Japanese institutions but every sophisticated investor on Earth.
By 2007, the yen carry trade had grown to proportions that defied measurement. The Bank for International Settlements estimated $250 billion in speculative positions. Private researchers suggested $500 billion. Some whispered $2 trillion. The truth was that no one knew—because the trade existed primarily in over-the-counter derivatives, cross-currency swaps, and interbank lending markets where transparency goes to die.
What everyone knew was this: the yen carry trade had become the marginal source of liquidity for global risk assets. When Japanese money flowed out, markets rose. When it flowed back, markets crashed.
During the Global Financial Crisis of 2008, the yen appreciated 30% against the dollar in a matter of months. The carry trade unwind affected the prices of assets that had nothing to do with subprime mortgages. The yen’s reversal alone extracted an estimated $500 billion to $1 trillion from global markets.
Japan had become the world’s shadow central bank, and the yen had become the world’s shadow funding currency. Every asset class on Earth was leveraged to Japanese interest rate policy.
The Game became more intense in 2013: -
The newly appointed BOJ governor Haruhiko Kuroda announced “Quantitative and Qualitative Monetary Easing” in 2013 —a program that would double Japan’s monetary base within two years. The BOJ would purchase ¥50 trillion in Japanese Government Bonds annually, along with ETFs, J-REITs, and corporate bonds. When the bank was purchasing bonds – it means it was giving cash to the sellers. Now, sellers had tons of money and it again came to the international market.
The program metastasized. By 2014, annual JGB purchases had risen to ¥80 trillion. By 2016, the BOJ had introduced negative interest rates, charging banks for the privilege of holding reserves. In September 2016, it added “Yield Curve Control,” capping the 10-year JGB yield near zero regardless of how many bonds it had to purchase.
By September 2025, the Bank of Japan’s balance sheet had grown to approximately ¥760 trillion—roughly 130% of Japan’s GDP. The BOJ owned 52% of all outstanding Japanese Government Bonds. It owned approximately 8% of Japan’s stock market through ETF purchases. No central bank in the developed world had ever accumulated assets of remotely comparable scale.
But the balance sheet was only the visible portion of the iceberg. The invisible portion was the global capital structure that had been built on top of it.
Japanese institutional investors—insurers, pension funds, banks—held approximately $4.5 trillion in foreign portfolio investments. Japan held $1.189 trillion in U.S. Treasury securities alone, more than any other foreign nation. These investments had been funded, directly or indirectly, by a policy rate that sat at or below zero for a quarter-century.
When you hear that the Federal Reserve controls global liquidity, you are hearing a half-truth. The Fed sets the price of dollar funding. But Japan sets the price of the marginal dollar that flows into the riskiest asset classes. The Fed is the heart. Japan is blood.
And the blood is now being recalled.
September 2025 – the “U” turn :-
The document released on September 19, 2025 said - the largest holder of Japanese equities—an entity that has purchased ¥83.2 trillion in stock index funds over twelve years—will begin selling.
Let us examine what this actually means.
The BOJ’s ETF holdings have a book value of ¥37.1 trillion and a market value of approximately ¥83.2 trillion. The unrealized gain of ¥46 trillion represents one of the largest paper profits in financial history. These holdings constitute roughly 8% of the Tokyo Stock Exchange Prime Market’s total capitalization.
The disposal will occur at a pace of approximately ¥330 billion per year in book value terms and ¥620 billion in current market value. At this pace, the complete liquidation will require more than 134 years.
Looking at the time period - the markets heard “small annual sales” and concluded “negligible impact.” This is the first of several analytical errors that will cost investors dearly in the coming years. This is the BRAHMASTRA.
What will happen now?
The bank which was buying at all dips – will become SELLER. ¥620 billion is just 0.05% of the trading volume on the Tokyo stock exchange. So, the impact on the price will be negligible but the impact on the emotion is huge.
ETF unwind is merely the first movement of a three-part symphony. The second movement is the interest rate normalization. The third is the potential unwind of the yen carry trade itself.
It means the money from the World market will go back to the JAPAN. When huge money goes back and new alternatives are not ready – the effect on the world market liquidity will be huge. The USA will face the heat most with the DE-DOLLARISATION will pick up the speed.
Look at the top investor – Buffett. He also converted his USD 450 billion to Yen. We always tell to keep watch on the top investor’s moves to get the view of the coming time.
Next Japan Interest Rate Meet: -
On 23rd January the BOJ will meet again to discuss the outlook and decide about the rate hike.
In December 2025 they hiked from 0.50% to 0.75%. With the increase in the rate the cost of YEN carry trade goes up and it starts winding up.
What NEXT?
In a highly leveraged world market – it is the interest rates which decide your return. Interest is your COST and if the cost goes up – the return will be affected for sure.
While you get busy with the WAR NEWS, remember – war may or may affect your asset class – but the JAPAN’s Interest rate policy will affect us all.
Keep your eye on JAPAN.
Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.
Learn a Lesson. Live with Passion & Invest with Reason.
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