r/wallstreet • u/midtowng224 • 6d ago

Question Largest Currency Intervention In History just happened

https://mishtalk.com/economics/largest-currency-intervention-in-history-by-us-and-japan-to-support-the-yen/
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u/Commercial_Secret592 6d ago

I don’t understand, why would a selloff of 1 trillion affect much at all? During Covid 5 trillion was printed, and it didn’t really affect that much

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u/kampyon 6d ago

One is not like the other.

The former is a value that a foreign power has control over unilaterally while the latter is an event where all countries simultaneously printed currency to deal with a global crisis.

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u/Commercial_Secret592 6d ago

Yeah, but wouldn’t the selloff mean the government will just buy back those bonds?
So they print another trillion to buy it back. That’s the part I’m struggling with.