Trump: Not thinking about extending tariff deadline

Why isn't Japan dumping all US debt?
Interest earned?
That's the best they can get for their money?

Thank god for AI

AI Overview
China, Japan share of US bond market shrinks to record low ...
Japan doesn't dump its US debt holdings because it would trigger severe economic consequences for both countries, including a potential collapse of the US Treasury market and a sharp rise in interest rates. While Japan has been selling US Treasuries, this is primarily to manage its currency and for strategic reasons, not a wholesale abandonment of its holdings.
Here's a more detailed breakdown:
1. Mutual Economic Dependence:
US-Japan Economic Relationship:
The US and Japan have a complex economic relationship with significant trade and investment flows. Japan holds a substantial amount of US debt, making it a major creditor.
Interdependence:
Both countries rely on each other's economic stability. A massive sale of US debt by Japan could severely destabilize the US economy, potentially impacting Japan as well.
2. Strategic Considerations:
Currency Management:
.
Japan sells US Treasuries to manage its currency, the yen, and prevent it from depreciating too much. A weaker yen makes imports more expensive, potentially harming Japanese businesses and consumers. According to YouTube videos, Japan also uses these sales to buy yen, increasing its value.
Leverage in Trade Talks:
.
Japan's finance minister has stated that its US Treasury holdings can be used as a bargaining chip in trade negotiations with the US.
3. Potential Consequences of a "Fire Sale":
Collapse of the US Treasury Market:
.
If Japan were to suddenly sell off a large amount of US debt, it would flood the market with Treasury securities, potentially causing a sharp decline in their prices.
Increased US Interest Rates:
.
As Treasury prices fall, interest rates on US debt would rise, making it more expensive for the US government to borrow money and potentially impacting mortgage rates and corporate borrowing.
Global Economic Instability:
.
A US economic crisis triggered by a Treasury market collapse could have far-reaching consequences for the global economy.
4. Why Japan doesn't just sell:
Self-inflicted Harm:
Dumping US debt could also harm Japan's own economy by significantly reducing the value of its remaining Treasury holdings and causing instability in financial markets.
Limited Benefits:
While Japan benefits from having a weaker yen, it also faces the negative consequences of a weaker yen. The Bank of Japan has been intervening in the market to stabilize the yen, which can involve selling US Treasuries.
Strategic Interests:
Japan's large holdings of US debt are also a strategic asset that can be used to influence US policy.
In conclusion, while Japan may strategically sell US Treasuries for various reasons, a complete abandonment of its holdings would be detrimental to both the US and Japan, making it an unlikely scenario.

Sooo.....Trump is lying again? "He is not thinking about extending the tariff deadline?" Just saying that aloud means he's be thinking about it in that moment...

*For those future comment readers/posters: my comment is about comedic semantics and nothing more

....how long before the TACO traders gobble up the dip?

Trump: I doubt we'll have a deal with Japan

History often repeats itself
(not necessarily in exactly the same manner )


Commodore Perry and Japan (1853-1854)
On July 8, 1853, Commodore Matthew Perry of the United States Navy, commanding a squadron of two steamers and two sailing vessels, sailed into Tōkyō harbor aboard the frigate Susquehanna. Perry, on behalf of the U.S. government, forced Japan to enter into trade with the United States and demanded a treaty permitting trade and the opening of Japanese ports to U.S. merchant ships.

https://afe.easia.columbia.edu/speci...1750_perry.htm

Unnecessary sir all you had to do was just walk to the car in silence

When will this shitbag shut his mouth?

Lol he sees that dxy goes up And is writing shi.s looser

As a huge Taco trading fan, it would be nice but the market has learned, it can’t seem to go down at all anymore.
-35T (signing my post for Van)

*TRUMP: NOT THINKING thats anought

President of the Republic

Japan.. It ok Donald, we will just dump all your Debt... Mwahhaaaaa