Tom Bilyeu's Impact Theory Fiat, Force, and Fallout: How Today’s Financial Wars Will Reshape Your Future | Tom's Deepdive
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Feb 3, 2026 A deep dive into how the US dollar has become a tool of economic statecraft and what that means for global trade. A look at the yen surge, carry-trade panic, and the ripple effects on bond markets and mortgage rates. Discussion of rising financial fragmentation as countries build alternatives and why real assets and resilience are now prioritized over pure efficiency.
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Dollar Weaponizes Market Signals
- The U.S. rate-check on the yen signaled a shift: the dollar is now a tool of statecraft, not a neutral bridge for trade.
- That signal triggered a global rush to unwind yen carry trades and created a liquidity margin panic that moved markets violently.
Mechanical Vacuum Threatens U.S. Rates
- Japan's massive U.S. Treasury holdings and a yen carry trade unwind can create a 'mechanical vacuum' in U.S. bond markets.
- That vacuum would spike U.S. interest rates and immediately raise household borrowing costs like mortgages and credit cards.
End Of The 'King Dollar' Era
- Scott Besant's rate-check signaled willingness to devalue the dollar to prop up allies' currencies.
- That marks the end of the 'king dollar' era and the start of deliberate currency manipulation as policy.