Japan quietly intervened to save its collapsing currency, a sign of deep stress that's bad news for Japan, US bonds, and the AI boom.

• Japan sold dollars to buy yen at 2:30 a.m. when markets were thin, spiking the yen briefly — a clear sign of desperation since past interventions all failed.
• The weak yen is driving a record wave of Japanese corporate bankruptcies, because companies pay more for imported supplies while the currency keeps sinking.
• Foreign investors are dumping Japanese bonds at the fastest pace since 2023, fearing losses as the yen falls and yields creep higher.
• In the US, a possible Fed rate hike threatens small businesses already drowning in debt costs, with 40% of them unprofitable.
• Big money like Blackstone is cashing out of AI data centers and cancelling projects, hinting the AI boom may be deflating while locals fight rising power and water bills.

Outlook: Japan will likely keep burning dollars to defend the yen and may eventually sell its US Treasury holdings, adding more pressure on an already strained US economy.