Japan’s Yen Crisis is Becoming America’s Problem

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22 Comments

  1. Instead of forcing Japan to sell its US Treasuries to get cash, Japan borrows against them using the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) repo facility. Japan can then buy yen without triggering a US bond market crisis. By using euros instead of dollars to buy yen, the Treasury managed to intervene and squeeze currency speculators without directly harming the strength of the US dollar.

  2. US trade money to Japan. Japan buys oil from… ??? Then those folks who sell the oil get the money and it just disappear? So US keeps printing money? I feel like someone is holding onto the money and is not allowing the cycle of money to happen.

  3. You cannot explain the yen carry trade better, this is peak explication, if you did not understand then do not bother with any more economics videos

  4. Who borrows yen and buys US stocks? How is that even possible?

    I earn yen and have bought US stocks with the dollars I bought with me yen, but borrow yen from a bank and buy US stocks, no Japanese people I know do this. None.

  5. Printing MORE money is the only way to survive longer (but still die in the end). There is no Plan B my friend