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The US-Japan Currency Bailout Is A Total Sh*tshow... (AI Bubble) Analytics Table
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At 11:33 AM on July 31, a Reuters photographer's long lens caught the US Treasury Secretary's notepad at a cabinet meeting. Under a neatly underlined "to do": buy Japanese yen, $5-10 billion. Two days later, for the first time since 1998, America intervened to prop up Japan's currency. The official reason is friendship. The real story is self-defense: Japan is the largest foreign holder of American government debt, Japan had been selling that debt to defend its own currency, and America's own borrowing costs just hit their highest levels since 2001. America paid to stop its biggest lender from selling. Washington wants six impossible things before breakfast. You just want breakfast. In this video, Meerkat breaks down: - Why the US Treasury bought yen for the first time since 1998, reportedly through Goldman Sachs and Morgan Stanley, jointly with Japan's Ministry of Finance - What the Exchange Stabilization Fund is: a pot the Secretary can spend with only the president's signature, whose decisions "may not be reviewed" by anyone in government - How America funded the rescue by selling roughly $13 billion of euro assets, much reportedly French government debt, with the European Central Bank reportedly finding out only after the trades cleared - The cheeky detail that Japan was placed on the Treasury's own currency-manipulation watch list just 8 days before the intervention - Why Japan can defend the yen or afford its debt, but not both: the Bank of Japan owns roughly half its own bond market, and interest already eats ~13 trillion yen of a ~122 trillion budget - The $4 trillion carry trade: how borrowing cheap yen became a global habit bigger than India's economy, and why the extra yield is a fee for holding a grenade - What Japan selling $66.7 billion of US Treasuries in one month (the largest drop ever recorded) proved to Washington about its biggest lender - Why a $25 billion 30-year auction clearing at 5.22% (the highest since August 2001) is the number under your mortgage and your rent - The Fed's pawn shop for governments: why the Treasury Secretary wants an empty facility "upsized" 48 hours after the intervention - The Soros connection: how a man who made his name shorting the yen ended up rescuing it, while reportedly running a rate bet with America's own borrowing America did not rescue Japan's money. It paid its biggest lender to stop selling America's own debt. Your to-do list says milk, and it means milk. You are the only person in this story whose paperwork tells the truth. Frame that. 👉 Subscribe to Meerkat Explains for more videos about money, business, technology and the strange machinery controlling the modern world. All illustrations, visuals and animations featured in this video are original and created specifically for Meerkat Explains. Disclaimer: The information provided in this video and on this channel, collectively referred to as the "Content," is intended solely for informational, educational and entertainment purposes. It does not constitute investment, financial, legal or tax advice, nor should it be interpreted as a recommendation to buy, sell or hold any security, asset or investment strategy. Investing involves risk, including the possible loss of principal. You are responsible for conducting your own research and consulting qualified professionals before making financial decisions. Nothing in the Content creates a fiduciary, advisory or client relationship of any kind. The host, channel and all affiliated parties disclaim liability for any direct or indirect loss arising from the use of or reliance upon the Content. By viewing or interacting with the Content, you acknowledge and accept these terms. See you in the next one! #Japan #Yen #USTreasury #Bailout #Economy #Finance #MeerkatExplains The Japan Situation Is a Total Sh*tshow...
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