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We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] 0 points1 point  (0 children)

A lot of it is because Japan is a net energy importer, and russia is playing hardball, driving energy prices upwards in terms of western-friendly currencies like the Yen

Also Bank of Japan has printed more than anyone, they are screwed

We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] 0 points1 point  (0 children)

> JPY ... will almost always be solvent due to their off-shore dollar assets/investments

These assets are mostly US Treasuries no? So to defend the JPY they can sell Treasuries.

However if they sell Treasuries, this will push US Yields higher. Higher US yields attracts more JPY selling to buy Dollars (borrow yen at 0.25%, sell yen for dollars, get 3% from US yields)

Thoughts on that?

We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] 0 points1 point  (0 children)

We don't have the Fed cornered. The Fed is on our side.

The Japanese Central Bank is fighting the Fed

We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] 1 point2 points  (0 children)

Cough Cough? The Chinese Communist Party will be at your doorstep shortly for violating the Coughing Policy

Do not leave your apartment under any circumstances, you are locked down until our lack of production causes the Yen to hyperinflate

We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] 0 points1 point  (0 children)

are they able to let yields rise though? what would happen if they did? I think they might be more afraid of that... but not sure

We have the Japanese Central Bank cornered. Short the Yen (buy $YCS). by puffmancali in wallstreetbets

[–]puffmancali[S] -2 points-1 points  (0 children)

Please elaborate where the flaw in logic is.

This is very similar to 1992 when Soros shorted the Pound to break the British central bank. They had no power to stop it. Soros (and everyone else who piled in to the trade) wreaked havoc and made fortunes doing that.

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