Treasury Secretary Bessent Dares Traders to Bet Against a Stronger Yen: ‘I Am the House'

https://finance.yahoo.com/markets/currencies/articles/treasury-secretary-bessent-dares-traders-091530963.html

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. And you can bet against me if you want.

Japan spent a massive $96.4 billion between July 30 and Aug. 26 to defend the yen, which had slid to a four-decade low, with the U.S. joining in with yen purchases of its own.

Money for housing, medical care, childcare or education in America?

Ssssh!

Money quietly going into Japanese savings bank, but Trump arrogant big mouth gave away the secret plan. 😂

Always expect Trump and everybody within his toxic administration to do the wrong thing, if it's something that's not good for the American people then that's something that they will likely do.

Always remember - it's never about the people and it's always about the cash.

7 minutes ago, spidermike007 said:

Always expect Trump and everybody within his toxic administration to do the wrong thing, if it's something that's not good for the American people then that's something that they will likely do.

Always remember - it's never about the people and it's always about the cash.

In this case, it isn't so simple.

Japan is one of the largest investors in US Treasury securities. If the Yen falls significantly, they won't buy as many US bonds and that will drive up interstate rates and the cost of US borrowing. The US is already paying a very significant amount of its budget to service the debt that's outstanding. The last thing they need is more debt expense.

And then there's the Yen carry trade. That has already been affected, but it's still somewhat profitable for Wall Street. If Japanese interest rates rise, money could be sucked out of the US markets and back to Japan. Anyway, don't think you or the "people" won't be affected if the US markets collapse.

52 minutes ago, spidermike007 said:

Always expect Trump and everybody within his toxic administration to do the wrong thing, if it's something that's not good for the American people then that's something that they will likely do.

Always remember - it's never about the people and it's always about the cash.

Go on take the money and run. 😄

35 minutes ago, jas007 said:

Anyway, don't think you or the "people" won't be affected if the US markets collapse.

Classic rationale for all fascism in the past 50 years...

"We're uhh doing this for your protection"

11 minutes ago, SiSePuede419 said:

Classic rationale for all fascism in the past 50 years...

"We're uhh doing this for your protection"

Do you receive US Dollars in any way, shape, or form? If so, what you have are only pieces of paper without the “markets.” They need to remain in a functional state, or else. Don’t think for a minute that you would somehow be immune to a market collapse. That’s what some people just can’t get through their heads.

Edited 1 hour ago1 hr by jas007

1 hour ago, jas007 said:

In this case, it isn't so simple.

Japan is one of the largest investors in US Treasury securities. If the Yen falls significantly, they won't buy as many US bonds and that will drive up interstate rates and the cost of US borrowing. The US is already paying a very significant amount of its budget to service the debt that's outstanding. The last thing they need is more debt expense.

And then there's the Yen carry trade. That has already been affected, but it's still somewhat profitable for Wall Street. If Japanese interest rates rise, money could be sucked out of the US markets and back to Japan. Anyway, don't think you or the "people" won't be affected if the US markets collapse.

It was worse than that I think....the Japanese were getting close to selling US bonds..............if they start to dump them all hell will break loose.......yikes!!

Significant update:

Treasury’s financing requirement has been raised materially, while the enlarged buyback programme has not produced lasting relief at the long end.

On September 16–18, 2026, the secondary-market 10-year yield remained around 5.0%, after briefly reaching 5.041%, while the 30-year remained around 5.35%–5.40%. Those are still near the highest levels since 2007.

The more important new development is fiscal rather than just market-price noise: Treasury raised its expected July–September 2026 net marketable borrowing to $739 billion, $68 billion above the May estimate. It also expects another $628 billion of borrowing in October–December. That means heavier supply pressure is continuing, rather than Treasury being able to rely on a smaller financing need.

Thank God Bessent has a handle on all of this.

2 hours ago, jas007 said:

In this case, it isn't so simple.

Japan is one of the largest investors in US Treasury securities. If the Yen falls significantly, they won't buy as many US bonds and that will drive up interstate rates and the cost of US borrowing. The US is already paying a very significant amount of its budget to service the debt that's outstanding. The last thing they need is more debt expense.

And then there's the Yen carry trade. That has already been affected, but it's still somewhat profitable for Wall Street. If Japanese interest rates rise, money could be sucked out of the US markets and back to Japan. Anyway, don't think you or the "people" won't be affected if the US markets collapse.

Agree, except that this time they might not sell as many US bonds (as Japan has done already).

Just now, nauseus said:

Agree, except that this time they might not sell as many US bonds (as Japan has done already).

They say they’ve already sold some. That’s part of the reason why the US markets recently corrected a bit. Anyway, the hope is that the selling doesn’t get out of hand.

7 minutes ago, jas007 said:

They say they’ve already sold some. That’s part of the reason why the US markets recently corrected a bit. Anyway, the hope is that the selling doesn’t get out of hand.

Yes, I think I said as much, and Japan is not buying either. China similar to Japan AFIK.