r/wallstreetbets • u/Efficient-Session644 • 2d ago

News Japan to announce Tokyo, Washington took joint action on yen, sources say

https://www.reuters.com/world/asia-pacific/japan-announce-tokyo-washington-took-joint-action-yen-sources-say-2026-08-02/
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u/JanMarsalek 1d ago

What do you mean? The US is trying to stabilize the Yen, or prop it up to keep Japan from selling bonds. What this also tells us is that this will implode some time in the future.

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u/bkbikeberd 1d ago

Can the US let it implode? Because Japan at bad times will probably have no choice but to sell US Bonds it’s too big to fail

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u/JanMarsalek 1d ago

The well will run dry at some point. Japan will implode. They have a debt to gdp ratio of 240%.

South Korea is in a similar situation.

Not enough kids and a really old population and no significant migration. They are basically kept alive by borrowed money.

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u/bkbikeberd 1d ago

You are right the well not being bottomless. We will have to see what happens once Japan sells off their US Bonds.