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US Treasury undertakes historic intervention in yen market

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Re: US Treasury undertakes historic intervention in yen market

#21

Post by deadbabe »

throwaway132448 wrote: post #12
deadbabe wrote: post #8

Earlier quoted context omitted.

If you can manipulate the market why not do it? Literally no one benefits from the alternative.

> Literally no one benefits from the alternative. Future you might disagree with present you. But even if we disregard time, I think millions of consumers would benefit from the opportunity to have competitive markets again. If an actual economic forest fire was allowed to burn, we might eliminate some of the too-big-to-fail corruption and oligopoly that is the norm now and provide space for new seeds to grow.

You can’t have competition forever. At some point someone wins decisively, and then there is only the illusion of competition.

Re: US Treasury undertakes historic intervention in yen market

#22

Post by blitzar »

eigenspace wrote: post #5

Japan holds a huge amount of US treasuries, and I guess was considering a mass sell off to raise cash to defend the Yen. US treasury bond yields are already dangerously high for the US and Japan selling treasuries would push yields up even higher, and could trigger more panic selling from others. I guess this is Bessent's scheme to try and kick that can down the road.

> kick that can down the road

With two left feet and a couple of swings and misses, the can isnt in much danger.

Re: US Treasury undertakes historic intervention in yen market

#23

Post by eigenspace »

HumblyTossed wrote: post #20
eigenspace wrote: post #5

Japan holds a huge amount of US treasuries, and I guess was considering a mass sell off to raise cash to defend the Yen. US treasury bond yields are already dangerously high for the US and Japan selling treasuries would push yields up even higher, and could trigger more panic selling from others. I guess this is Bessent's scheme to try and kick that can down the road.

[flagged]

Even if he was, it's not like he could control the rampaging elephant in the room.

Re: US Treasury undertakes historic intervention in yen market

#24

Post by inigyou »

eigenspace wrote: post #5

Japan holds a huge amount of US treasuries, and I guess was considering a mass sell off to raise cash to defend the Yen. US treasury bond yields are already dangerously high for the US and Japan selling treasuries would push yields up even higher, and could trigger more panic selling from others. I guess this is Bessent's scheme to try and kick that can down the road.

Japan has to sell off its bonds to get dollars to buy oil with since oil is so expensive. I wonder why that happened.

Re: US Treasury undertakes historic intervention in yen market

#26

Post by inigyou »

halJordan wrote: post #13
bilsbie wrote: post #10

Can anyone steel man the “this isn’t a big deal” side of this? On x and reddit all I see are sky is falling posts.

Why would the sky be falling? Getting the world's largest economy to prop up your own economy is kind of the point to being an ally of the biggest economy in the world; the Japanese and American governments being in bed together and planning the Japanese economy is not just normal, but is one of the bigger conspiracy theories persisting from the 1980s when US intervention is blamed as the reason Japan's economy stagn…

Because then the world's largest economy suddenly needs to de-lever to afford the oil you made more expensive. The USA government will enter a debt-interest spiral if Japan sells its bonds. There will be no recovery from that besides, maybe, hyperinflation through printing away the debt.

Re: US Treasury undertakes historic intervention in yen market

#27

Post by [deleted] »

halJordan wrote: post #16
dzonga wrote: post #6

Japan is the sort of canary in the coal mine. so yeah if the yen pops - then the u.s will too given all the 'a.i' shenanigans & the market manipulation with oil. but I guess the US Treasurer is willing to manipulate the market till they can't.

Japan is a what? They've been dumping billions of dollars and trillions of yen into their economy since the 1990s. How is this any different than the past thirty years of intervention? I stg you guys. I get that ginning up a conspiracy gives you agency in a powerless world but come on.

[deleted]

Re: US Treasury undertakes historic intervention in yen market

#28

Post by Supermancho »

sph wrote: post #9
deadbabe wrote: post #8

Earlier quoted context omitted.

If you can manipulate the market why not do it? Literally no one benefits from the alternative.

Manipulation of the market never comes for free. You just delay, and render unpredictable, the eventual reckoning, for short-term benefits. It will be interesting to see who’s gonna blame the free market when that day arrives.

> You just delay, and render unpredictable, the eventual reckoning, for short-term benefits.

After a century, those short-term benefits add up to a long term benefit.

Re: US Treasury undertakes historic intervention in yen market

#29

Post by Supermancho »

inigyou wrote: post #26
halJordan wrote: post #13

Earlier quoted context omitted.

Why would the sky be falling? Getting the world's largest economy to prop up your own economy is kind of the point to being an ally of the biggest economy in the world; the Japanese and American governments being in bed together and planning the Japanese economy is not just normal, but is one of the bigger conspiracy theories persisting from the 1980s when US intervention is blamed as the reason Japan's economy stagn…

Because then the world's largest economy suddenly needs to de-lever to afford the oil you made more expensive. The USA government will enter a debt-interest spiral if Japan sells its bonds. There will be no recovery from that besides, maybe, hyperinflation through printing away the debt.

> The USA government will enter a debt-interest spiral if Japan sells its bonds.

Regardless if they sell all their bonds this second or not, the US spiral is a foregone conclusion.

Re: US Treasury undertakes historic intervention in yen market

#30

Post by hilariously »

deadbabe wrote: post #21
throwaway132448 wrote: post #12

Earlier quoted context omitted.

> Literally no one benefits from the alternative. Future you might disagree with present you. But even if we disregard time, I think millions of consumers would benefit from the opportunity to have competitive markets again. If an actual economic forest fire was allowed to burn, we might eliminate some of the too-big-to-fail corruption and oligopoly that is the norm now and provide space for new seeds to grow.

You can’t have competition forever. At some point someone wins decisively, and then there is only the illusion of competition.

We already have anti-trust and other regulation to manage this problem, we simply need to use it.

There's no end of competition, the world changes, companies bloat and make bad choices, smaller competitors can react and change faster - it's only in our corporate hegemony that we don't consider that a viable alternative.

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