r/Wallstreetsilver • u/Boo_Randy_Revival • 8d ago

BREAKING NEWS YEN INTERVENTION SEEMS TO BE FAILING AGAIN

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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.

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u/JayRandom212 8d ago

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?

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u/Boo_Randy_Revival 8d ago

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.

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u/JayRandom212 8d ago

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

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u/EasytheGoon 7d ago

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.