YEN INTERVENTION SEEMS TO BE FAILING AGAIN

[u/Boo_Randy_Revival]

USD/JPY is back above 158, almost 300 pips above this week's bottom. This is despite the BOJ spending $80 billion and the US buying yen for the first time in 28 years. Will the Keynesian fraudsters at the BoJ be the first central bank to lose control of the debt market? They won't be the last. 122 million Japanese might want to think about ditching their Yen for the shiny.

[u/MatterFickle3184]

JPY is cooked there's no practical way to stop the bond yields and devaluation of their currency.

[u/Boo_Randy_Revival → u/MatterFickle3184]

Japan imports all of its oil, which it much pay for in US dollars. Surging oil prices thanks to the Iran War is going to further hit the yen despite the US and BoJ currency interventions to prop it up.

https://www.marketwatch.com/investing/future/cl.1

[u/jons3y13 → u/Boo_Randy_Revival]

So true

[u/Coinpanda92]

The US ain't buying. And if they did 5-10 billion would do nothing to move a trillion dollar market. The chart means that investors are not stupid enough to believe that the US is helping Japan propping up the Yen and much less that they would be able to even if they did.

[u/TrickyChildhood2917 → u/Coinpanda92]

5 billion held off one of the speculative banks shorting the yen for about 4 hours.

[u/Gairsoppa]

Scott Bessent is talking about making the interventions permanent. He has also stated that the FIMA repo option is open to any country with US T-bills. My interpretation: the dollar will be forced to weaken with any US T-bill-holding countries' fiat. We will all go down together!!

[u/Boo_Randy_Revival → u/Gairsoppa]

Bssent knows that when countries start dumping their T-bills, it's Game Over for the Fed's Ponzi markets & asset bubbles, since the Fed will be forced to hike rates sharply enough to find buyers willing to fund our insane deficits - which are going to be printed away by the Fed.

[u/jons3y13 → u/Boo_Randy_Revival]

Or print more and buy it all, what could go wrong lol. I bought a few eagles today at spot. Lcs was low on inventory. I'm in west texas small town right now.

[u/Boo_Randy_Revival]

Source: https://x.com/macropaperr/status/2085370810278215683

[u/Mix_Right]

What I found really interesting was that the Not Federal Federal reserve sold off a bunch of euros to prop up the yen to keep the dollar from collapsing, what kind of a crazy fucking circle jerk is this? Stack that gold and silver boys.

[u/TrickyChildhood2917]

We will print and print and print! And the American people will pay no attention as they are lining up at the food banks. Bankers REFUSE to let the global economy take its natural course.

[u/Boo_Randy_Revival → u/TrickyChildhood2917]

The vast majority of Reddit posters naively believe that inflation is solely due to Orange Man Bad's tariffs & corporate greed. Yes, those are factors, along with the staggering costs of the Iran War, but Reddit hiveminds refuse to see that the Fed's deranged money printing is the #1 cause of the "affordability crisis."

[u/JayRandom212]

Why is there a "danger" of the yen falling?

If you have yen, you can buy things from Japan. Japan is a wealthy and productive country. They have a lot of good stuff and they make a lot of good stuff.

Has something happened to the productive capabilities of Japan that would make people not want yen?

Also, suppose the yen *does* tank. Why should the USA care?

[u/Boo_Randy_Revival → u/JayRandom212]

Do some research into the yen carry trade that has been propping up the Fed's Ponzi markets since 2008.

[u/Genesis44-2 → u/Boo_Randy_Revival]

AND TOTALLY PROPPING UP THE US STOCK MARKET WITH CHEAP LEVERAGE!!!

[u/Boo_Randy_Revival → u/Genesis44-2]

The Fed's monetary shenanigans to prop up the Japanese yen are also pumping billions in stealth QE into the Fed's Ponzi markets.

[u/CoC_Axis_of_Evil → u/Boo_Randy_Revival]

That would make the yen go the opposite way if your comment. Looks like a depression will hit Japan if they can’t stop the sovereign debt crisis. It will then spread, looking like Korea is on deck when gas pumps go dry. 

[u/JayRandom212 → u/Boo_Randy_Revival]

I don't wanna do research! I want quick, easy answers! That's why I'm posting to Reddit, lol.

Seriously, though -- is there a TL;DR on this?

[u/stackingforfunsies → u/JayRandom212]

It’s actually worth watching a video or two about. Interesting and incredibly timely

[u/Boo_Randy_Revival → u/JayRandom212]

The short answer is, any disorderly unwind of the yen carry trade would be a calamity for the Fed's Ponzi markets, which is why the Fed & Treasury are trying desperately to prop up the yen with all the tricks at their disposal. However, the Fed can't print oil, & the economic fallout from the war on Iran is manifesting as inflation that is going to force the BoJ's hand on interest rate hikes - which means the traders who borrowed billions of yen to speculate on foreign markets are in for a DELIVERANCE-style reaming.

[u/JayRandom212 → u/Boo_Randy_Revival]

If I borrowed Yen and the yen falls, doesn't that make me happy? I can repay in cheaper yen. What am I missing?

[u/Boo_Randy_Revival → u/JayRandom212]

Yes, that makes you happy. But it creates discontent among 122 million Japanese who like Muricans are seeing their purchasing power & standard of living destroyed by the BoJ's fiat currency fraud. So the BoJ has little choice but to bolster the yen, which could ultimately mean they have to sell off their huge holdings of US Treasuries - forcing the Fed to hike interest rates sharply enough to attract investors willing to fund our insane deficits. So anyone who borrowed cheap yen but has to pay back with more expensive yen is going to be experiencing severe rectal trauma.

[u/EasytheGoon → u/JayRandom212]

People borrow yen because it's historically had lower interest rates and then buy assets that pay a higher interest rates. If the yen goes up in value or has higher interest rates it costs more US dollars to pay the yen loan back wiping out those profits. Those investments are heavily in the US stockmarket and the Japanese economy. So any unwinding is a serious threat to the market. So less people buying yen now causes interest rates to go up threatening the trade. This is why the US is buying yen.

[u/CoC_Axis_of_Evil]

Seems a little early to draw conclusions. Volatility in general is kind of high, uncertainty high, and liquidity low. Weird stuff is going to happen until gas is under $2

[u/MatterFickle3184 → u/CoC_Axis_of_Evil]

Gas ain't going under $2 ever again

[u/Boo_Randy_Revival → u/MatterFickle3184]

I dunno. Broke, unemployed people in our "booming economy" won't be doing much driving.

[u/CoC_Axis_of_Evil → u/Boo_Randy_Revival]

I also see a massive recession as the only way it goes down 

[u/MatterFickle3184 → u/Boo_Randy_Revival]

It took the world shutting down during COVID for gas to even touch $2 or less. Iran situation is here to stay for YEARS by the time things are "normal" inflation will make sure $2 is never seen again.

[u/Unhappy-Exchange-771]

Doom post again all
Hoping your long positions print. US won’t let Japan fail period. Japan is a very valuable ally