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To: MtnClimber

What would actually get the Feds attention is if the Bank of Japan (BOJ) decided to buy their oil and gas from Russia instead of the US and Western countries. Russia would allow them to purchase their energy in JPY rather the USD. They would no long need to hold US Treasuries as a reserve and could sell a lot of their current holdings.

The JPY has depreciated to historic low leveles from the dollar and if the BOJ no longer needed to use USD it would reduce their rising energy costs. Of course, interest rates on US Treasuries would rise which would impact all US interest rates and increase the debt service costs of everyone.

The Fed would need to stop its QT and go back to buying Treasuries to keep the prices up and rates down. This would undermine the Fed’s efforts to control inflation and would be a disaster.

BTW, this could also be completely prevented by going back to a sane energy policy in the US which would also do wonders for the global inflation problem.


6 posted on 09/25/2022 4:37:49 PM PDT by Dave Wright
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To: Dave Wright
You are speaking in theory, not reality. Electorate has spoken and we are way too late to put the “genie” back into the bottle.

Also the Feds need QTs, do you realize the size of their balance sheet? They have no more room, lol, party is over.
10 posted on 09/25/2022 4:45:00 PM PDT by rollo tomasi
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