Maybe because interventions to artificially prop up your currency only work if people have faith in your government?! America is an unreliable partner and Japan has been treading water economically for 15 years.
stuntondeezh0es on
You can’t fight bonds and win this way. The BoJ needs to raise rates significantly to bring back money into the country. Inflation is running wild and countries that rely heavily on imports are getting less and less for their money
wormtheology on
You mean to tell me the Bank of Japan not pursuing long-term solutions and relying on world class bellend Scott Bessent’s circular financing schemes is only a temporary solution? Color me fucking shocked. If the Bank of Japan won’t raise rates or sell US Treasuries, the Yen is going to get waxed without constant pledges of US Dollars. We have a deeply unserious moron running the US Treasury trying to save his buddies engaging in the Yen carry trade. These people are on absolute tar if they thought this lunch was going to damn near be free forever.
airbear13 on
Probably going to keep happening if both countries keep on track with their current monetary and fiscal trajectories. Japan might end up borrowing against their treasuries to get USD to prop up their currency since the US really doesn’t want them selling off their bonds. Maybe that can tide them over until the fed cuts rates or investors are more willing to accept more US debt.
Important-Emu-6691 on
Trying to fiscally manipulate your way out of all your economic problems isn’t gonna work when the fundamentals are crashing. Japan is simply falling behind South Korea, Taiwan, and China on all fronts and is facing an oil crisis that it’s trying to subsidize its way out of. Resulting in overconsumption in oil when there’s a global shortage
5 Comments
Maybe because interventions to artificially prop up your currency only work if people have faith in your government?! America is an unreliable partner and Japan has been treading water economically for 15 years.
You can’t fight bonds and win this way. The BoJ needs to raise rates significantly to bring back money into the country. Inflation is running wild and countries that rely heavily on imports are getting less and less for their money
You mean to tell me the Bank of Japan not pursuing long-term solutions and relying on world class bellend Scott Bessent’s circular financing schemes is only a temporary solution? Color me fucking shocked. If the Bank of Japan won’t raise rates or sell US Treasuries, the Yen is going to get waxed without constant pledges of US Dollars. We have a deeply unserious moron running the US Treasury trying to save his buddies engaging in the Yen carry trade. These people are on absolute tar if they thought this lunch was going to damn near be free forever.
Probably going to keep happening if both countries keep on track with their current monetary and fiscal trajectories. Japan might end up borrowing against their treasuries to get USD to prop up their currency since the US really doesn’t want them selling off their bonds. Maybe that can tide them over until the fed cuts rates or investors are more willing to accept more US debt.
Trying to fiscally manipulate your way out of all your economic problems isn’t gonna work when the fundamentals are crashing. Japan is simply falling behind South Korea, Taiwan, and China on all fronts and is facing an oil crisis that it’s trying to subsidize its way out of. Resulting in overconsumption in oil when there’s a global shortage