The Bankster Collusion between The US Treasury, FED and Japan

The Bankster Collusion between The US Treasury, FED and Japan

Fiat currency systems are totally dependent on debt to exist, the global bond markets are the lynchpin to their survival or extinction.

Japan’s yen currency is in deep, systemic crisis because of the bond yield (interest rate) spread between JGBs (Japanese government bonds) and US Treasury bonds.

Borrowing Yen is very cheap. So traders borrow yen and then buy US bonds (with the borrowed yen) to earn substantial profits. This is what a currency Carry Trade is in simple terms. Governments with weak currencies and cheap bonds hate carry trades.

This is why they often blame ‘currency speculators’ for their financial problems (even though the financial mess these governments are in are self-inflicted due to their own stupidity). And US Treasury bonds are the most important and critical debt/collateral instruments on earth.

Want to read this: Why I’m Incessant about the Japanese Yen Crisis these Days

US Treasuries are the very backbone of the global fiat financial system. More than the dollar is.

The U.S. Treasury does not control the interest rate of their bond issuance. Bonds are sold in Auctions. Meaning, buyers submit bids on what interest rate they want to receive on the bonds. If bond buyers believe there’s more risk in the USA financial economy, they demand higher interest (yields) on the bonds they want to buy from the UST.

However, if the UST starts buying back their own bonds from the market, they can bid the interest yields lower. And this is why the UST announced it will begin buybacks of their own bonds.

On the other hand, the FED has been actively selling the US Treasury bonds they own. This is called Quantitative Tightening (QT) in FED-speak. Yesterday, the FED announced it will begin slowing down its QT. Why? Because when the FED sells its bond holdings into the market, it raises bond yields (interest rates). So, the UST and the FED are acting in concert to lower US bond yields across the board.

This will also reduce the incentive for Japanese Yen carry trades as US bond interest rates (yields) come down. This is why Japan leadership met with both Janet Yellen (UST) and Jay Powell (FED) last month in Washington DC.

 Japan is also the single largest holder of US Treasury bonds on the planet. … It’s all connected. The USA banksters cannot afford to have Japan look to join BRICS.