The Guardian's editorial argues that Japan's escalating clash with the US over economic policy offers a warning for Andy Burnham as he sets out his agenda as prime minister. A bond sell-off triggered by an inflationary shock from the Gulf has prompted US treasury secretary Scott Bessent to demand that Japan's Sanae Takaichi scale back her spending plans and raise interest rates, effectively ending the "Abenomics" model that allowed Tokyo to run large deficits while keeping borrowing costs low. Washington fears a disorderly yen crisis could force Japan to sell US treasury bonds, pushing up American borrowing costs, and is using its leverage to block Tokyo's efforts to build economic self-sufficiency.

The piece draws a parallel with Burnham, whose first Commons speech as prime minister promised an activist state, regional reindustrialisation and reduced strategic dependence, while insisting this rests on fiscal responsibility inherited from Rachel Reeves's framework. Japan holds over a trillion dollars in US treasuries and had proposed a $2tn (£1.6tn) spending programme, giving it far greater fiscal firepower than Britain, yet even it is being constrained by Washington. The Guardian concludes that the Gulf-driven inflation shock strengthens the case for economic independence just as global bond market turmoil makes achieving it harder, a lesson it says Burnham should heed before his industrial strategy gets under way.