The Japanese government is giving the U.S. AI bubble a "lifeline." Feeling a bit confused? Since Sanae Takaichi took office, she publicly announced that Japan's economy no longer needs "reflation" stimulus and officially distanced itself from ultra-loose monetary policies. But at the same time, her push for "crisis management investment" and "growth investment" has placed AI at the very core. By 2040, public and private investment is expected to exceed 370 trillion yen, with about half focused on the "AI and digital" sectors. Tightening monetary policy on one hand, while throwing money at AI on the other. The Bank of Japan originally planned to raise interest rates, and the market estimates a 90% chance of a hike before December. The yen continues to depreciate, and capital keeps flowing out. But the global bond market is already voting with its feet. Japan's 30-year government bond yield has surged to 4.235%, a historic high. The 10-year yield has broken past 3.1% for the first time since 1996. Japan is one of the world's largest creditor nations. As of the end of 2025, Japan's net external assets are projected to reach 561.75 trillion yen. Its money supports U.S. Treasuries, French bonds, and U.S. stocks. If Japanese capital is forced to flow back home, the U.S. Treasury market will lose one of its most important marginal buyers. Arthur Hayes observed that Japan's Finance Minister has already instructed domestic institutions to "reassess asset allocations," reduce foreign assets, and increase domestic ones. If GPIF (Japan's Government Pension Investment Fund) shifts its strategy, the entire "Japan Inc." will follow suit—selling off foreign bonds and stocks to bring funds back home. The AI bubble, U.S. stocks, and Bitcoin are all waiting for the same thing: When will Japan no longer hold up? When will Japan's money come home in a big way?