Tom Bilyeu

In that vein, reports have been flying that the Federal Reserve conducted what's known as a rate check on Japanese yen on Friday.

Again, this is all about signaling.

Historically, when this kind of rate check has been done, it's been a precursor to direct currency intervention on behalf of the U.S.

to help Japan halt the yen's rapid depreciation.

I don't think people understand because Japan is like relatively small, but their economy is amazing.

sort of in the way that it's plugged into the U.S.

economy for sure.

And by proxy, the global economy.

So it's very important, even if they've been in stagflation for like 40 years, which is crazy.

Apparently, Besant has 160 yen per dollar threshold that he says when we hit that, it's time to take action.

I think there were like 158 or something very, very close.

Following the rate check, the yen surged roughly 3% over two trading sessions.

And by this morning, today, Monday, the currency was back to about 153.81 yen.

And that's down from a Friday high.

Okay, this is the number, 159.20.

So, woo, got close to that 160.

The question is, what exactly is Besant trying to accomplish with this?

He's indicated that he's concerned that the sell-off in Japanese government bonds, which I'll sometimes read as JGBs, which is normally how people refer to it, but that just means Japanese government bonds, was going to spill over into US treasury market, driving up American borrowing costs.

When Japanese government bond yields spike like they did just recently, hitting a 27-year high, by the way, following Japanese Prime Minister Takeuchi's tax cut proposals, it creates a mechanistic vacuum that sucks liquidity out of the U.S.

bond market.