TOKYO — THE UNRAVELING.

A financial supernova has just been triggered in the East.

Prime Minister Sanae Takaichi’s new cabinet has greenlit a seismic ¥13.9 Trillion stimulus … a desperate gambit to fight inflation that will, with mathematical certainty, obliterate the Japanese Yen.

This is not mere policy. This is Takaichi’s Loop: a self-annihilating cycle of fiscal dominance from which there is no return.

The mechanics are a death spiral. The stimulus widens the deficit in a nation with a 230% debt-to-GDP ratio. The Ministry of Finance issues bonds. The Bank of Japan, already holding 50.9% of all JGBs, is forced to monetize the debt, printing currency to fund its own government.

The Yen, now at 151.90 to the Dollar, plunges further. This depreciation imports brutal inflation, which in turn demands more stimulus. The loop is closed. The trap is sprung.

This is the moment the carry trade universe begins its violent collapse. A $10 Trillion foundation of global finance is now destabilized. The Yen, the G7’s perennial pillar, is being systematically sacrificed.

And into this vacuum, a new sovereign emerges: Bitcoin.

The correlation is undeniable: r = -0.72 against the Yen. As the state-sponsored currency debases, the algorithmically-enforced scarcity of a 21 million coin hard cap becomes the ultimate lifeboat. This is not speculation; it is a fundamental re-anchoring of value. We are witnessing the great pivot from the era of central bank control to the age of programmable scarcity.

Takaichi’s inflation-fighting package is the very agent of hyperinflation. It is the catalyst that will propel Bitcoin beyond $150,000, then $400,000, as it becomes the post-fiat reserve for a world losing faith.

The paradigm has fractured. The old god is dying. A new one, built on code and mathematics, is being born.

Watch the 155 USD/JPY line. When it breaks, the world will hold its breath.

The Great Unraveling is here.