Arabs held by the balls by the USA, Japan held by the 'boobs' by the USA.

While the Arabs are held by the balls by the USA, Japan is now held by the 'boobs' by the USA. The yen is sliding once again despite the help rendered by the USA buying Yen. Suffice to say, such an action by the USA is more about helping the USA itself than Japan in actuality. Do not be mistaken by the USA move as the colonizer helping the colonized.

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