Japan could sell off its massive treasury holdings of US$1.2 trillion to buy the Yen but cannot do so without USA permission. And the USA will not allow that to jeopardize its economy. The USA is still also highly dependent on the Japanese Yen carry trade, which if Japan were to repatriate all the money back to Japan will be highly detrimental to the USA economy.
Japan is between a rock and a hard place. Saving the Yen by increasing interest rate will bring more misery to ordinary Japanese citizens, who are already hard pressed to cope with the high cost of living with wages practically stagnant over the last three decades. Letting the Yen slide to unprecedented territory means having to pay more for oil and other imported commodities. Both options are difficult choices to make.
Anonymous
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Japan may be the ally of the USA but could be the catalyst that will lead to the collapse of the USA when it is desperate enough to sell off its massive holdings of USA Treasuries. Which is why the USA is helping to shore up the Yen when its economy is itself in ICU. Forget about the soaring stock market, which is a mirage, a bellwether of the money printing frenzy.
Any dumping of USA Treasuries by Japan will set off a chain reaction. Unsurprisingly, the UK's holding of USA Treasuries is more than US$950 billion, almost a quarter of the UK's GDP. Any collapse of the USA Treasury Ponzi Pyramid is going to send the UK to the stone age. What are friends for you would ask? In the context of the USA, friends are for screwing when the shit hits the fan. Enemies are enemies and do not have to bear the consequences.
Cannot tell whether Japan is held by the 'boobs' or the pussy. Trump goes for the pussy all the time. Even the Brits were wary of Trump when he was too close to the late Queen Elizabeth, lol.
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