NEW YORK — The moment the US debt crossed US$40 trillion, it stopped being a number and became a gravitational force — one powerful enough to bend Asia’s bond markets, currencies and policy priorities.
Officials in Tokyo know this better than anyone. After decades of wrestling with its own debt‑heavy equilibrium, Japan offers a preview of what happens when a government’s borrowing needs start steering global capital flows rather than the other way around.
It’s one thing for this dynamic to be afoot in Asia’s No. 2 economy. It’s quite another when we’re talking about the globe’s biggest — and the protector of the reserve currency.
