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Posted on 08/01/2026 7:20:52 AM PDT by delta7
Aug 1 (Reuters) – The U.S. Treasury bought yen on Friday to support the battered Japanese currency, the Financial Times reported, marking Washington’s first yen-buying intervention with Tokyo in more than a decade as it languishes near 40-year lows.
The Federal Reserve Bank of New York sold euros for yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley, the FT said, citing people familiar with the matter. The report did not indicate any amounts of yen purchased....
Earlier on Friday, the Treasury informed a number of banks that it might intervene in the yen market and that they should “stand ready for future action,” a source familiar with the matter told Reuters.
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Tic, Toc, Tic, Toc.....
....$10 billion is the amount as of today, could be more, could be less....however, no amount will save them.
“The Federal Reserve Bank of New York sold euros for yen ....”
Question…What makes you think Japan will collapse before Germany? Have you seen GDP numbers over the last 5 years for both?
Selling Euros to buy Yen is a clear statement as to what part of the world is our past and what part is our future, at no immediate cost to the USD.
US stepping in to support the yen shows how interconnected markets are. Japan has its own issues, but coordinated moves like this can have ripple effects. Interesting to watch how currency interventions play out in the current environment.
The cycle continues, Japan collapses followed by the EU.That's your own halluzination. No cycle there. People simply don't buy cycles any more.
What makes you think Japan will collapse before Germany?
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I don’t know who will collapze first, but in one way, Japan is worse.
AI Overview
Japan has a much higher debt-to-GDP ratio than Germany, with Japan at roughly 237% and Germany at roughly 64% according to International Monetary Fund data.
They could solve all their problems simply by pumping out more Godzilla movies.
Interesting take, the debt-to-GDP thing.
Out of curiosity, it just looked it up. The US is at around 125%.
I was going to ask when is the point of no return. But if a government is doing nothing to rein in its deficit spending, I guess pretty much any number will do.
You realize the NY Fed is the Treasury's agent for market interventions, right?
The Federal Reserve Bank of New York (NY Fed) manages the Federal Reserve System’s foreign currency reserves held in the System Open Market Account (SOMA). These consist almost entirely of euro- and Japanese yen-denominated assets (deposits at official institutions plus high-quality government securities of euro-area countries and Japan). The NY Fed also acts as fiscal agent for the U.S. Treasury’s Exchange Stabilization Fund (ESF), which holds a roughly matching portfolio.
Latest detailed figures (as of March 31, 2026)From the Treasury and Federal Reserve Foreign Exchange Operations quarterly report:SOMA total foreign-currency-denominated assets: ≈ $19.1 billion (euro- and yen-denominated only).
Euro-denominated assets: ≈ $13.15 billion. Japanese yen-denominated assets: ≈ $5.92 billion.
Combined SOMA + ESF euro-denominated deposits and government securities: ≈ $26.3 billion.
Combined SOMA + ESF yen-denominated deposits and government securities: ≈ $11.8 billion.
These are invested primarily in cash/deposits at official institutions (e.g., foreign central banks and the BIS) and marketable government securities (German, French, Dutch, and Japanese government debt). Investments are split as evenly/proportionately as practicable between the SOMA and ESF.
For context and comparison: Early estimates and balance-sheet analysis suggest that Japanese authorities sold approximately $53 billion to nearly $59 billion (roughly JPY 8.45 trillion) during the yen-buying, dollar-selling market intervention conducted on Thursday, July 30, 2026.
Financial Times: US intervened in currency market to prop up yen
Just for discussion purposes, let’s say a person making $100,000/yr, buys a house and carries a mortgage to $500,000.
In both cases, as long as the interest payments can be made, the amount of the debt is affordable, and not a major problem.
I know those are two different situations—as the homeowner has actual equity in the value of the house,,,,but a country has the huge advantage of printing whatever extra money is needed, thereby devaluing their currency to meet their obligations.
“The cycle continues, Japan collapses followed by the EU.”
Are you referring to the Armstrong cycles?
How does it apply to silver?
You were saying buy silver at $121 while the cycle expert, Armstrong, was predicting a crash?
I think that is what Japan has done with the yen.
You were saying buy silver at $121 while the cycle expert, Armstrong, was predicting a crash?Armstrong became a cycle "expert" after he lost $700 million trading with them. Now he tries to sell the cycles to the suckers. Guess why he mentioned the "cycle" in is first reply.
No children —> No noninflationary economic growth —> No future
Sold Euros for Yen.
There’s some method to this madness.
Europe is going the way of the middle east under Saladin.
Euros will be worth less if not altogether worthless, and soon.
Didn’t Mark Twain teach generations there’s no better ally than someone you’ve beaten in a fair fight?
Doesn’t look to me as if Japan is competing anymore so much as collaborating, cooperating with US policies abroad - we both face common enemies.
“Didn’t Mark Twain teach generations there’s no better ally than someone you’ve beaten in a fair fight?”
Huh?
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