This is the nuance between the Japan (yen) and US economics,
The yen has fallen to its weakest level in decades because US interest rates are much higher than Japan’s.
To support the yen,
Japan may need to sell some of its huge holdings of US Treasury bonds and use the dollars to buy yen.
That is a problem for the US.
Japan is the largest foreign holder of US debt, with about $1.2 trillion.
If Japan starts selling Treasuries at scale, US bond yields could rise sharply, making borrowing more expensive across the economy.
This is why the US just sold every euro to help the yen survive
but this does not fix the main cause
this large gap between US and Japanese interest rates is the "problem" for usd
and this is why longer-term currency-debasement risk comes from the liquidity backstop and the willingness to protect bond markets from forced selling
They will try every measure to save the yen because they have to and it only ends by devaluing the usd in the process
and that is why i continue to buy high desirable scarcity assets like bitcoin
MDB
npub1dd…mfrmf
2026-08-06 19:44:33 UTC
Author Public Key
npub1ddxxz2v3zvk0f3krjrww4tn4qsdej496f7wyvkk2wzltx5yptfts6mfrmfPublished at
2026-08-06 19:44:33 UTCEvent JSON
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"content": "This is the nuance between the Japan (yen) and US economics, \n\nThe yen has fallen to its weakest level in decades because US interest rates are much higher than Japan’s. \n\nTo support the yen, \n\nJapan may need to sell some of its huge holdings of US Treasury bonds and use the dollars to buy yen.\n\nThat is a problem for the US. \n\nJapan is the largest foreign holder of US debt, with about $1.2 trillion. \n\nIf Japan starts selling Treasuries at scale, US bond yields could rise sharply, making borrowing more expensive across the economy.\n\nThis is why the US just sold every euro to help the yen survive\n\nbut this does not fix the main cause\n\nthis large gap between US and Japanese interest rates is the \"problem\" for usd\n\nand this is why longer-term currency-debasement risk comes from the liquidity backstop and the willingness to protect bond markets from forced selling \n\nThey will try every measure to save the yen because they have to and it only ends by devaluing the usd in the process\n\nand that is why i continue to buy high desirable scarcity assets like bitcoin",
"sig": "6ec962435a5e4fcdab909c77ae6d796bc6b0dcccfed0423ed0a66db846e34f5fd26aa5d1fc95565ecf2d7f29da8675c435d259e42a159edd486a5adc236f1a79"
}