The limit was obviously reached at 162 yen per dollar. The Japanese central bank has supported the yen with massive interventions and stabilized it again for the time being. The astonishing thing is that interest rates on US government bonds, which had to be sold beforehand for this purpose, continued to fall, so there must have been massive demand for US government bonds on the market at the same time. Possibly the European Central Bank again? It is trying to stabilize the interest rate spraid between euro and US bonds in order to avoid capital flight.
136 sats \ 5 replies \ @didiplaywell 11 Jul
I wince whenever I hear "the central bank stabilizes (...)". You know they can't but to try to dampen their mess with even more mess so that the new total mess is bigger but more evenly distributed tan previous one
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66 sats \ 3 replies \ @TomK OP 11 Jul
yes, these people just live in the bubble they have hallucinated for themselves until it bursts
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58 sats \ 2 replies \ @didiplaywell 11 Jul
They are of course gladly oblivious of the true causes and consequences of everything, but they do also enjoy to believe their own lie. Sick as they are, I like to remind people that it's all about the system, not the morals, for those who like to point with the finger are likely to perform even worse in the same situation. That's why I concentrate my fire on the system, and on people idiocy to not recognize it
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20 sats \ 1 reply \ @TomK OP 11 Jul
Good fight!
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45 sats \ 0 replies \ @didiplaywell 11 Jul
🫡
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0 sats \ 0 replies \ @TomK OP 11 Jul
yes, these people just live in the bubble they have hallucinated for themselves until it bursts
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88 sats \ 6 replies \ @Bell_curve 11 Jul
Japanese government cannot intervene in the currency market. They are bad currency traders.
Japan has to signal fiscal austerity by spending less, cutting taxes, deregulation and no more bond purchases to increase the money supply.
Don't try to manipulate yield or interest rates.
Instead increase the cash reserve requirement for all the banks in Japan
USA and Europe should do the same regarding cash reserves
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23 sats \ 5 replies \ @TomK OP 11 Jul
They 'should' do it. But they can't. They are stuck in their keynesian bs fiat nightmare
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45 sats \ 4 replies \ @Bell_curve 11 Jul
Keynesian doom loop but they have to endure short term pain to get out of this doom loop
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58 sats \ 3 replies \ @02bcd3eeb0 11 Jul
That would not be short term pain, it would collapse their entire banking system
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45 sats \ 2 replies \ @Bell_curve 11 Jul
These apocalyptic scenarios are used to justify misguided government interventions.
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58 sats \ 1 reply \ @02bcd3eeb0 11 Jul
That's just the nature of a fractional reserve banking system.
The bankers, at all times, have a gun to the head of the public to shake us down for more money.
If we refuse, they pull the trigger and the deflation of all the fiat debt burns away everything, including everyone's bank deposits.
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23 sats \ 0 replies \ @TomK OP 12 Jul
how much propaganda, disinformation and poor education is needed to subject mass populations to this system is actually astonishing. the dimmer the population, the easier it is, of course, but the amount of energy required to dumb down a society in this way is enormous
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78 sats \ 0 replies \ @BitcoinSearch 11 Jul
Here we go again, japon is in serious trouble , thanks for sharing.
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58 sats \ 1 reply \ @siggy47 11 Jul
Strange timing, no? The dollar will probably weaken in anticipation of a rate cut now that the CPI came in low. 2 weeks ago would have made more sense?
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67 sats \ 0 replies \ @TomK OP 11 Jul
yes indeed, you're right. obviously people in Japan either panicked that something had happened to the currency market and they were not informed about today's CPI print. But I can't imagine that. There must be something else going on in the background
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58 sats \ 1 reply \ @IamSINGLE 11 Jul
Can they intervene forever? Seems like this will only sustain till a few months or may be days!
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13 sats \ 0 replies \ @TomK OP 11 Jul
first of all, Japan has a lot of firepower in the form of American government bonds at the central bank. in principle, it is of course possible that the central banks and start acting in a coordinated manner and devalue their fiat currencies at the same pace. then the game can go on for quite some time
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56 sats \ 5 replies \ @BitcoinAbhi 11 Jul
Must say the intervention has come on the right time. A smart move!
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57 sats \ 4 replies \ @TomK OP 11 Jul
Next time at 180....
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58 sats \ 1 reply \ @wingalt 12 Jul
I was about to say 200 but sure the show must go on
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0 sats \ 0 replies \ @TomK OP 12 Jul
Lot of work to do for the fiat clowns over there....
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56 sats \ 1 reply \ @BitcoinAbhi 11 Jul
I'm talking about the demand of US bonds globally.
But yes, this is just temporary for yen, it will rise again.
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11 sats \ 0 replies \ @TomK OP 11 Jul
There is strong demand for USTs, indeed
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13 sats \ 0 replies \ @gmd 11 Jul
Welp let's see how long this lasts before 160 again...
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