by Martin Armstrong, Armstrong Economics:
QUESTION: Mr. Armstrong, I understand you are deeply involved in analyzing the unfolding debt crisis in Japan, and the mainstream media rarely seems to grasp the situation the way you do. I would greatly appreciate any comments or insights you can share on what is happening here in Japan and where you believe this crisis is headed.
Aikra
REPLY: I hope you are doing well. I apologize I could not handle all the corporate calls from Japan. I will send a quick Institution assessment shortly. The Japanese yen has come down to major long-term technical support challenging the 1987 Crash Levels.
Yes, I think even the Fed does not quite grasp the extent of the real problem. The media is claiming that the Fed is intervening to prevent Japan from selling US bonds. That just shows their ignorance.
TRUTH LIVES on at https://sgtreport.tv/
The U.S. has recently taken action to support Japan, but the press claims this is out of self-interest rather than pure altruism. In late July 2026, the U.S. Treasury took the rare step of intervening in the currency market to help boost the value of the Japanese yen, marking a significant shift in policy. But WHY?
U.S. Treasury Secretary Scott Bessent’s intervention occurred in a very public way. During a live-streamed cabinet meeting, he was photographed holding a note that read, “To do: Buy JPY (yen), 5-10 billion.” Granted, the U.S. Treasury instructed the New York Federal Reserve to sell euros and buy yen, directly participating in the intervention. This was a joint effort with Japanese and South Korean authorities, who were also selling dollars to support their own currencies.
This is where the so-called analysts the press routinely quotes reveal just how little they understand.
They argue that the U.S. intervention was not primarily about helping Japan, but about protecting America’s own financial stability. According to their theory, Washington feared that a collapsing yen would force Japan to liquidate its massive holdings of U.S. Treasury securities to defend its currency.
That narrative falls apart once you understand who actually owns those Treasuries.
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