The U.S. just bought yen for the first time since 1998. Not out of charity. Japan's been dumping Treasuries to defend its currency, and that pushes up America's borrowing costs. So Washington stepped in — not to help Tokyo, but to stop its biggest creditor from becoming a forced seller.
The kicker? They paid for it by selling euros from a Treasury fund. ECB found out after the fact. Broke convention, used someone else's currency, all to keep rates from spiking further.
This wasn't diplomacy. It was damage control. When your lender starts liquidating, you don't let them keep going — you intervene. Just don't expect them to say that part out loud.
The kicker? They paid for it by selling euros from a Treasury fund. ECB found out after the fact. Broke convention, used someone else's currency, all to keep rates from spiking further.
This wasn't diplomacy. It was damage control. When your lender starts liquidating, you don't let them keep going — you intervene. Just don't expect them to say that part out loud.