The end of the “yen carry trade” isn’t the threat that a lot of people feared.
Why?
Because Bessent and Trump are coordinating a “controlled demolition” of the corrupt fiat debt system.
Bessent is in full control of the world’s financial system.
“US Treasury Secretary went full judge, jury, and executioner on speculative yen shorts overnight with probably the most direct explicit jawboning we have seen in years...
“I am the house now, so when we intervene with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policymakers are going to do,” Bessent said at a Southern Methodist University event in Texas on Tuesday.
“And you can bet against me if you want.”
Bessent and Japan are working in coordination.
“Bessent’s remarks also underscore his unusual level of engagement on economic policymaking in Japan, which is among the world’s largest holders of US debt.”
“Bessent has coordinated with Japan Finance Minister Satsuki Katayama on currency interventions and put increasingly public pressure on the central bank to raise interest rates, a move that would support the yen and reduce Japan’s need to sell Treasuries for market intervention.”
https://zerohedge.com/markets/i-am-house-now-bessent-goes-full-judge-dredd-yen-bears
The problem with the panicans view of things, is that they are trapped in the past.
They can’t accept that Trump and Bessent might actually be in full control of the world’s financial system.
Here’s how things used to work:
Yen carry trade:
Investors borrow Japanese yen at historically low interest rates and invest the proceeds in higher-yielding assets, such as U.S. Treasury bonds or technology stocks.
They profited from the interest rate differential between Japan and other economies.
It was easy money for big financial players.
The fear was that at some point, Japan would have to raise their rates, which would trigger an unwinding of positions and liquidation of assets. Causing a crash.
But Bessent is encouraging Japan to raise rates and everything isn’t crashing.
Why?
Bessent controls the world’s reserve currency and is coordinating “with” Japan, who’s leader is a Trump ally.
Instead of Japan dumping Treasuries to prop up the Yen, Bessent sold “Euros” and bought the Yen, in order to prop up Japan’s currency.
And guess what?
Bessent didn’t warn the European Central Bank first.
Why?
They aren’t our allies.
The last vestiges of the centralized banking system are located in Europe.
The Euro dropped 4% on this move.
Bessent is now in control of the central bank system.
He even used the enemy’s weapon against them.
Bessent ordered the New York Federal Reserve to sell the Euros from the “Exchange Stabilization Fund” to buy the Yen.
The “Exchange Stabilization Fund” is the private little “slush fund” of the Treasury.
It isn’t appropriated by Congress and isn’t audited.
Bessent can use it to help our real allies and use it against our financial enemies.
Only a fool would bet against Bessent.
