🇺🇸🇯🇵 A photographed memo at Camp David yesterday may have exposed a yen bailout.
Reuters caught the note on Treasury Secretary Scott Bessent's desk showing the U.S. is weighing a $5-10 billion yen buy, and Treasury had already tipped off banks it might storm into the market Friday.
Washington hasn't rescued the yen since 2011, and back then it took an earthquake and a tsunami to justify it. So yeah, kind of a big deal.
The yen is the loose bolt holding the whole dollar system together.
Investors borrow it for almost nothing, flip it into dollars, and shovel it into U.S. stocks and bonds. That quiet flow has been propping up Wall Street for years.
Then the U.S. and Israel hit Iran and oil went haywire. Japan imports nearly all its energy, so the price spike slammed straight into its economy and the bolt started rattling loose.
That's the real reason Washington is scrambling. If this trade unwinds, it drags Wall Street down with it.
Source: Reuters
Reuters caught the note on Treasury Secretary Scott Bessent's desk showing the U.S. is weighing a $5-10 billion yen buy, and Treasury had already tipped off banks it might storm into the market Friday.
Washington hasn't rescued the yen since 2011, and back then it took an earthquake and a tsunami to justify it. So yeah, kind of a big deal.
The yen is the loose bolt holding the whole dollar system together.
Investors borrow it for almost nothing, flip it into dollars, and shovel it into U.S. stocks and bonds. That quiet flow has been propping up Wall Street for years.
Then the U.S. and Israel hit Iran and oil went haywire. Japan imports nearly all its energy, so the price spike slammed straight into its economy and the bolt started rattling loose.
That's the real reason Washington is scrambling. If this trade unwinds, it drags Wall Street down with it.
Source: Reuters