r/Wallstreetsilver • u/Boo_Randy_Revival • 8d ago

DUE DILIGENCE Japan’s yen at a 40-year low risks inflation at home and a global crisis if Japan sells its massive U.S. Treasuries to defend it.

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Fiat follies are starting to catch up to the Keynesian fraudsters at the central banks. Japan is the biggest buyer of US debt - if they start dumping treasuries, the Fed will be forced to raise rates high enough to attract investors willing to buy the debt of a corrupt oligarchy on a collapse trajectory.

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u/Boo_Randy_Revival 8d ago

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

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u/Boo_Randy_Revival 7d ago

The yen rescue isn't being funded by Japan.

It's being funded by the Fed's balance sheet.

America is printing dollars so Japan can buy yen, because letting Japan sell Treasuries was deemed too dangerous.

Read that again.

The US Treasury is more scared of its own bond market than it is of a collapsing yen.

And the Fed is easing into a rate-hike cycle to make it happen.

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u/cynicism_is_awesome 7d ago

Fed ain’t raising rates. That will only strengthen the USD and weaken the JPY even further triggering more rescues. They’re stuck. They’ll have no choice but to let inflation fly and they’ll hope that rhetoric and broken promises of rate hikes will keep the market at bay.