by Mish Shedlock, Mish Talk:
US intervention shows all isn’t well with the US dollar.
Yen Intervention and Unintended Consequences
The Wall Street Journal reports Scott Bessent’s Yen Trade Has Unintended Consequences for the Markets
The joint U.S.-Japan support of the yen is unusual. The way it is being financed is unprecedented, and adds liquidity when the punch bowl of the U.S. economy and markets is already overflowing.
TRUTH LIVES on at https://sgtreport.tv/
So far the scale is small, but Treasury Secretary Scott Bessent wants the Fed to drop its $60 billion cap on the emergency facility being used—or abused, given there’s no emergency—to lend to Japan, and pledged to do “whatever it takes” to help.
Knowing the Correct Price of Things
There it is. Bessent thinks he knows the correct prices for things. He does not believe in markets finding authentic clearing prices. This is true for gold, silver, and oil. This will end badly. Plan accordingly.https://t.co/rYKZDOtdPw pic.twitter.com/gTz9pXIfsb
— Chris Martenson (@chrismartenson) August 1, 2026
Not Attractive Reserve Currency
Professor Barry Eichengreen – famous for defending dollar reserves primacy as ‘the cleanest dirty shirt in the hamper’ – has flipped. He now concedes the dollar’s utility as a financial reserve is diminished by the illiquidity of the Treasuries market. Wow. https://t.co/YOpdQTYWnE pic.twitter.com/knX0JwMTHW
— Kathleen Tyson (@Kathleen_Tyson_) August 6, 2026
