The David Lin Report · Friday, August 14, 2026
Jim Thorne highlights the potential for a global financial crisis if Japan's economy collapses, citing its history with secular stagnation and current rising long-term interest rates. He notes that Scott Bessent, the Treasury Secretary, is concerned about this scenario and has previously profited from shorting the Yen.
“And, you know, if we start talking about secular stagnation where it really started was out of Japan in the 80s.”
“If Japan blows up, that is really concerned and Bessent knows that.”
“And he's also on the record saying, we don't, we can't have higher interest rates.”