Trump administration 2024-2028

[HavokFour]

Why the historic U.S.-Japan intervention has failed to halt the yen’s slide

The Japanese yen has erased about half of the gains from an unprecedented U.S.-Japan intervention less than two weeks ago.

www.cnbc.com

So Japan is desperate to not have its currency drop below 160 yen to the dollar, so much so that its willing to sell US treasuries to defend the currency.

The US, with its high yields already, is desperate for the Japanese to not sell its USD holdings, so much so its willing to sell Euros to defend the yen.

And the markets are calling the bluff.


Things are about to get really uncomfortable for both nations.

Writing is on the wall, as evident of the gold rush happening in the background.

[Reuters]South Korea's central bank to buy gold from domestic producers​

The purchases ‌will ⁠have a limited impact on trading prices of gold in the country, since the bank plans to buy gold ⁠intended for exports only at contract prices, it added.

The bank said the purchases would support ⁠its management of foreign reserves. They mark the central bank's first ⁠domestic gold purchases in 13 years, according to local media reports.

Even FOX is reporting on it.

A quiet rush for gold is sweeping the globe — here's why countries are stockpiling it

A record 45% of central banks plan to add gold reserves as governments worldwide brace for persistent inflation and geopolitical uncertainty.

www.foxnews.com

 

[Altair]

Writing is on the wall, as evident of the gold rush happening in the background.

[Reuters]South Korea's central bank to buy gold from domestic producers​

Even FOX is reporting on it.

A quiet rush for gold is sweeping the globe — here's why countries are stockpiling it

A record 45% of central banks plan to add gold reserves as governments worldwide brace for persistent inflation and geopolitical uncertainty.

www.foxnews.com

Trump bringing back the gold standard, look at that.

Remarkable here is that the USD had been dropping in lockstep with the yen, so the Yen is actually falling faster than it appears.

 

[PrairieFella]

Why the historic U.S.-Japan intervention has failed to halt the yen’s slide

The Japanese yen has erased about half of the gains from an unprecedented U.S.-Japan intervention less than two weeks ago.

www.cnbc.com

So Japan is desperate to not have its currency drop below 160 yen to the dollar, so much so that its willing to sell US treasuries to defend the currency.

The US, with its high yields already, is desperate for the Japanese to not sell its USD holdings, so much so its willing to sell Euros to defend the yen.

And the markets are calling the bluff.


Things are about to get really uncomfortable for both nations.

We own about 400BB in US Treasuries...maybe a 200BB dump will cover some of the tariff harms...

 

[Altair]

We own about 400BB in US Treasuries...maybe a 200BB dump will cover some of the tariff harms...

There should be a global effort to drive up US borrowing costs as a result of his trade war, but it would take a global push.

 

[HavokFour]

And another one is gone.

Trump says Karoline Leavitt resigning as White House press secretary

Leavitt, who is the youngest White House press secretary every, gave birth in May to a girl, her second child.

www.cnbc.com

 

[Altair]

And another one is gone.

Trump says Karoline Leavitt resigning as White House press secretary

Leavitt, who is the youngest White House press secretary every, gave birth in May to a girl, her second child.

www.cnbc.com

That's too bad. I liked watching her press conferences.

 

[Czech_pivo]

And another one is gone.

Trump says Karoline Leavitt resigning as White House press secretary

Leavitt, who is the youngest White House press secretary every, gave birth in May to a girl, her second child.

www.cnbc.com

Good Riddance to her.

 

[Good2Golf]

We own about 400BB in US Treasuries...maybe a 200BB dump will cover some of the tariff harms...

There should be a global effort to drive up US borrowing costs as a result of his trade war, but it would take a global push.

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

The globe owns about a quarter of the U.S. debt, ~9/39TUSD. Even a partial sell off would create major debt management and budgetary sustainability issues.

I wonder who the biggest buyer(s) of fire-sale Treasuries would be?

 

[Altair]

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

The globe owns about a quarter of the U.S. debt, ~9/39TUSD. Even a partial sell off would create major debt management and budgetary sustainability issues.

I wonder who the biggest buyer(s) of fire-sale Treasuries would be?

In truth a global sell of would tank the global economy. And I'm not convinced the USA wouldn't use IEEPA to stop a capital run off.