Nobody Can Agree Why America Stepped In to Save Japan.

Japan holds $1.1 trillion of American debt—more than any country on Earth.

But when Japan’s currency starts collapsing, they have one options to defend the yen: sell down its massive dollar reserves to prop up the currency.

That means selling U.S. Treasuries.

If Japan sells enough, then we see price falls. And when bond prices fall, America’s borrowing costs rise. Which doesn’t stay in Washington, it ripples through the entire economy.

That is the rate your mortgage, your car loan, and your credit card are priced off. That’s the real reason.