Transcript for:
Japan's Financial Moves and Global Politics

$1.7 trillion gone did Japan just end the reign of the US dollar $5 trillion evaporated in just 3 weeks us bonds dumped the dollar plummeted and the one behind it all was Japan what drove a trusted ally for over 70 years to become the key that unlocked a global financial breakdown a silent but devastating financial strike for decades Japan quietly funneled capital into the US financial system it held trillions of dollars in US Treasury bonds helping the US government borrow cheaply uphold the dollar's credibility and stabilize markets but in a single night Tokyo broke that pattern $1.7 trillion in US treasuries was dumped into the market bond yields soared the dollar slid stocks tanked to the financial world it was a panic-driven sell-off to Japan it was a calculated retaliation why because US tariffs directly targeted electric vehicles including Toyota Nissan and Honda icons of Japanese industry were lumped together with so-called foreign threats no negotiations no warnings just a silent trigger pulled and the global financial stage shook when America bears the cost the domino effect began in just three weeks Wall Street lost over $5 trillion in value soaring bond yields dragged the stock market into a nose dive but the biggest shock didn't hit Wall Street it hit Main Street where everyday Americans live car prices surged imported EVs disappeared inflation made a comeback the falling dollar pushed up the price of imports gas food electronics everything got more expensive the American middle class once promised the tariffs would save their jobs now only saw their bills pile up mortgage rates soared locking out new buyers savings accounts and retirement funds quickly lost value and the most concerning part this wasn't accidental it was the result of an unchecked economic strategy sacrificing long-term stability for short-term political leverage japan sparks a global revolt against the dollar japan's move wasn't just about dumping bonds it was a signal to the world we no longer consider the dollar the default option immediately after Tokyo acted other major economies followed china continued cutting dollar reserves ramping up yuanas based trade russia had long abandoned US assets india South Korea Brazil the UAE all began diversifying their reserves expanding currency swap mechanisms and Tokyo did something even bolder redirecting capital toward Asia buying regional bonds deepening regional currency cooperation reducing reliance on USD transactions a new financial order was quietly forming where the US dollar was no longer the center a new global reserve currency was being proposed backed by an Asia Eurasia alliance and this time Japan was leading the way america's overconfidence and the price it paid why didn't Washington see this coming because it believed Japan would never strike back since World War II Japan had been a loyal partner financially dependent on the US military under alliance treaties washington thought it had complete control the US financial markets descended into chaos and other nations were watching one by one from Asia to Europe to Canada they began to ask "Is it time to step out of the dollar's shadow?" Texas was once seen as the land of opportunity but when that opportunity turns into a nightmare who takes the blame isaiah Martin the young face stirring up Texas politics isn't just a congressional candidate he's the voice of a generation that refuses to stay silent while the old political system has lost 134 straight elections Martin brings something it can't manufacture clarity conviction and action born and raised in Houston he knows firsthand the injustices that have plagued his community for decades he's led efforts to protect student rights at the University of Houston and he's challenged Governor Greg Abbott head on he can get to Congress and clean up the mess you made in DC cuz it's time that we say absolutely not and now he's done shouting from the outside he's ready to step inside the halls of Congress where Texas's future is truly decided beneath the proud slogans of Texas is strong lies a reality riddled with cracks healthcare access is shrinking public schools are being reshaped by special interest groups all in the name of traditional values libraries are being converted into disciplinary centers but what's even more alarming Texans are now being encouraged to report one another in some cases a single person can earn up to $10,000 simply for tipping off the state about someone seeking personal health care even the driver who gave her a ride yes that's the policy and it's being actively enforced backed by those in power meanwhile middle class and working families are struggling to get by while the state's leadership continues to run a system of control not service when education health care and social safety nets are shrunk to fit a political agenda it's the people who suffer first isaiah Martin has spoken with hundreds of voters in Houston he removed duly elected school board members that were elected by the people of the city of Houston if the proposed cuts go through public schools like Yates and Wheatley are now in crisis not just from budget shortfalls but from a collapse in trust at the same time the push to eliminate the US Department of Education threatens to strip millions of students of access to standardized highquality education across the country and it doesn't stop with education previous tax and budget policies have made it harder for small businesses in Texas to survive input costs have soared production has slowed and workers have been laid off in waves martin asks a question that cuts deep are we trading away the future of an entire generation just to please a narrow block of conservative voters and for him the answer can never be yes isaiah Martin understands one thing clearly texas will not fix itself he's calling on the federal government and voters across the country to recognize that Texas is no longer just a local issue it's become a testing ground for a national conservative playbook control intimidation and exclusion from the democratic process this isn't just a special election it's a battle to reclaim the very values that once made America strong the right to live the right to learn and the right to choose your own future martin doesn't come to Congress to play nice he's not there to bow blend in or stay quiet he's there to fight to speak truth and to remind those who've grown too comfortable in power that power is meant to serve not to rule texas today could be a glimpse of America tomorrow and if that's true then democracy won't collapse in a blaze of war or financial meltdown it will erode through executive orders silent legislation and the quiet indifference of its own people history is clear democracies don't fall to outside enemies they crumble from within from self-satisfaction apathy and silence isaiah Martin has made it clear that's Texas right now and so I'm running for Congress because if we don't have a strong sense of federal government to come in here and be a check on the worst aspects of humanity why didn't anyone stop it if Texas is the test then the results will say everything about America's future the debates over the budget taxes and foreign policy continue to escalate opponents within the MAGA party have spoken out demanding a clearer direction what is really going on i look I don't think so there's there's a lot of good faith dialogue and discussion going on between leaders in both chambers and that's been very productive it's a one team approach and I think we're going to continue that for the next couple of hours and we'll see where we land tonight the MAGA party is in chaos as MAGA Mike Johnson the speaker of the house fails to convince his allies to pass the budget proposal they use the rules committee resolution to circumvent US law so that's the difference what What's their reaction to that it's illegal it looks like there's uh 15 members that are are holding out right now so unless something changes uh if you can't pass it you pass it so you do something better now it clearly doesn't have a vote uh there's I know over 12 members that are planning to vote against it key members of the party like Andy Biggs Chip Roy and many others have strongly criticized the budget they argue that it is too weak not decisive enough and incapable of addressing America's massive budget deficit this is not just a failure for Magamike but a collective failure for the MAGA party in unifying around a financial strategy that could provide long-term results the decisions made by party leaders will have a significant impact on the US economy and this only deepens the economic instability that is completely unnecessary proposing $4 billion in in cuts over 10 10 years we got a $2.25 $25 trillion a year structural deficit that needs to be addressed and they're not put that in there show give us some assurances there's a lot of mistrust in that process right now so we're trying to work through that right now with a bunch of members i am a no on this bill as it stands the Senate's budget proposal only offers a $4 billion cut while MAGA lawmakers are demanding $1.5 trillion clearly this budget cannot address America's huge budget deficit this discrepancy not only creates a tense debate but also highlights the lack of unity within the MAGA party on how to approach the budget and taxes when the budget issue is crucial to maintaining economic stability the differences between MAGA lawmakers reveal a big problem in America's financial strategy trump continues to impose tariffs on countries like China but the European Union and Japan are concerned about the inconsistency in America's policies sudden decisions like postponing tariffs only increase skepticism about his leadership abilities these decisions not only escalate tensions between the US and its international partners but also create conflict within the MAGA party the sudden shifts in foreign policy have led many to question whether this strategy will really bring long-term benefits president the latitude the the the runway to do uh what it is he was elected to do and that is get this economy going again and get our trade properly balanced with other countries so I think most the American people understand that it's at some point if you're in Congress pass a math test because the Senate bill doesn't add up it will destroy this country with more deficits and the inflation tax that is crippling the average American family i will not vote for the Senate more and more MAGA lawmakers are speaking out demanding a clearer and more feasible strategy chip Roy and Ralph Norman have relentlessly criticized the Senate budget and called for a bolder solution to address the massive budget deficit and national debt this is the moment the MAGA party needs to act not with temporary decisions but with long-term and more effective solutions these MAGA lawmakers are asking the big question about the leadership abilities of party leaders and whether they have the wisdom to lead America out of the economic crisis we were told we were told by Donald Trump and House Republicans that you were going to lower the high cost of living for everyday Americans in fact we were told that you were going to do it on day one and it hasn't happened the battle within the MAGA party is no longer just about the budget and taxes it's a struggle over trust and political effectiveness trump's decisions have sparked a massive backlash not only from his own party's lawmakers but also from the American public they don't just want stable and long-term policies but also demand action to restore trust these instabilities are pushing the US economy towards significant risks coupled with inconsistent foreign policies trust in the government is gradually eroding the US economy is now standing on the brink of significant risks the poorly thoughtout decisions from MAGA party leaders are driving the country deeper into economic instability the lack of consensus among party leaders is not only creating political crises but also pushing the economy into a deadlock meanwhile the public and small businesses are bearing the consequences of these unreasonable and poorly planned decisions these instabilities are increasing the anxiety for both citizens and entrepreneurs in the current economy 2,000 jobs gone $50 billion redirected ford didn't step back ford stepped away no warning no apology no negotiation just one move abandoning American soil and now one question remains is this betrayal or the only path to survive one when Ford walked away from the land that built it for over a century Michigan stood as the heart of American industry ford the lifeline of Wayne once the pride of American labor then came the announcement production of the Focus the CMAX and most EV lines moving overseas no more factories no more assembly lines no more promises to stay why because Ford can no longer afford the storm created by tariffs steel more expensive aluminum more expensive lithium up over 300% between 2020 and 2024 80% of the world's lithium is refined in China america imposed tariffs ford paid the price building EVs in the US now cost 25% more than doing it abroad ford was cornered two we're not competing with a company we're competing with a system tesla isn't just a car company tesla is a system an empire that mines lithium builds batteries manufactures vehicles and trains self-driving AI all in-house no dealerships no bureaucratic bottlenecks while Ford still wrestles with unions and legacy systems Tesla delivers directly to your door one Ford executive put it bluntly we're not competing with a car maker anymore we're going up against an entirely different production civilization so Ford struck back enter Project T3 a complete reinvention $50 billion in investment partnership with BMW for solid state batteries robots performing 90% of assembly work evs that run 1 million miles and charge in minutes no more showrooms just click and drive ford isn't building cars anymore they're building the future three ford was called a traitor but they didn't blink hours after the announcement political chaos erupted trump predictably fired back they turned their backs on the very workers who built them punishment was proposed tariffs blacklists federal contract cancellations and Ford didn't flinch didn't dodge didn't explain only one sentence from CEO Jim Farley do you want to lose 2,000 jobs now or 20,000 5 years from now harsh yes but it's reality ford didn't run they chose to survive they sacrificed a symbol to save the structure and ironically what looks like betrayal today may be the most pragmatic act of patriotism we've seen four adapt or disappear ford has made its choice ford knows the truth no business can conquer the future by clinging to the past governments can delay but markets don't wait hesitate and you're done while Trump rants Ford is rewriting the entire game no more wrench turners no more legacy factories no more dependency on political mood swings they're building plants where robots outnumber humans they're hiring software engineers over assembly workers they're selling cars like Amazon delivers packages if they succeed Ford becomes the blueprint for America's post oil industrial rebirth if they fail it'll be a warning shot for every giant asleep in the old economy don't blink because Ford might be the first but there but there but they won't be the last this is a struggle for survival for manufacturers in the US as protective policies seem no longer strong enough to keep them standing firm against the rapidly changing technology and global market ford is standing at a major crossroads adapt to technology or stick with the old model and if they get it right can the US automotive industry survive and thrive in the world of electric vehicles day pause for the people that didn't retaliate because I told them if you retaliate we're going to double it and that's what I did with China cuz they did retaliate in the meantime there will be a 90-day pause on the reciprocal tariffs as these negotiations are ongoing in the midst of the crisis Donald Trump does a 180° turn from declaring no tariff delay to a 90-day postponement so the question is is he really solving the problem or simply in a state of panic in the past Trump proudly declared there would be no tariff delay now in a whirling 180° turn he announces a 90-day delay on tariffs this sudden change has many asking is he in a state of panic as he watches the economy slowly collapse the whole world is watching one of Trump's decisions that's like setting a fire and trying to put it out at the same time previously he said "If we delay the tariffs it will be panic and America doesn't need to panic." Yet just days later Trump contradicts himself and postpones the tariffs to try to save the economy this begs the question is this decision just panic after seeing the bond market plunge no one knows for sure but clearly the swift change has left the public stunned excuse me Raquel if I could just add to what the secretary said many of you in the media clearly missed the art of the deal you clearly failed to see what President Trump is doing here you you tried to say that the rest of the world would be moved closer to China when in fact we've seen the opposite effect the European Union a major opponent once fiercely opposed Trump but now they're accepting his zero tariff for zero tariff proposal surely they never expected they'd be bowing to Trump while Trump had previously declared tariffs on most countries the European Union EU initially stood firm warning of an economic disaster yet just a few days later the EU had to turn around accepting Trump's offer in the hope of saving their economy this isn't just a major defeat for the EU it's a swift turn round that has the whole world questioning the EU's tariff strategy a tremendous amount of spirit from other countries including China china wants to make a deal they just don't know how quite to go about it you know it's one of those things they don't know how quite they're proud people the rest of the world would be moved closer to China when in fact we've seen the opposite effect the entire world is calling the United States of America not China because they need our markets they need our consumers and they need this president in the Oval Office to talk to them and as for China they won't back down while the EU rushed back to the negotiating table China stands firm against Trump's 125% tariff hike china is not the EU when Trump imposed a 125% tariff on Chinese goods Beijing showed no hesitation they continued to assert that they would not be bullied by Trump's demands