The Daily Signal Blame Japan, Not Trump: The Truth Behind the Market Drop and Greenland Deal | E.J. Antoni
Jan 31, 2026
They untangle a mistaken link between a political spat over Greenland and a global market drop. They trace the real market shock back to turmoil in Japan, including a snap election and bond-market fallout. They discuss how yen carry trades unwind and why Greenland matters for military access and rare minerals. They warn that Japan’s debt trajectory could foreshadow risks elsewhere.
AI Snips
Chapters
Transcript
Episode notes
Greenland Comments Didn't Trigger The Crash
- Market panic after Trump's Greenland comments was misattributed by many observers.
- The initial announcement produced almost no market movement, so the sell-off had another cause.
Japan Sparked A Global Unwind
- A shock in Japan triggered global liquidation via the yen carry trade unwind.
- Rising Japanese yields forced hedge funds to sell U.S. positions to repay yen-funded loans.
How The Yen Carry Trade Amplified Risk
- The yen carry trade depended on Japan's ultra-low interest rates to fund purchases of U.S. assets.
- As Japanese yields rose, leveraged funds liquidated positions to avoid rising borrowing costs.