Scott Bessent and Kevin Warsh are both signaling to markets that they are prepared to sacrifice the bond market and the U.S. dollar to support equities.
A substantial dollar devaluation may therefore be in the cards, similar to the Plaza Accord or the devaluation in 2002–04.
GOVERNMENTS ARE SELLING BILLIONS OF DOLLARS TO STOP THEIR CURRENCIES FROM CRASHING
And the US government may be also selling USD to support them.
Last night Japan and South Korea both sold US dollars in the open market on the same night.
This is something which has rarely happened in the modern history.
Japan bought yen and sold dollars in the New York session, its first intervention in 3 months. USD/JPY fell 2.4%, its biggest single-day drop since January 2023.
South Korea sold dollars the same night. The won rose 2% to a 9-month high.
Last month it was at a 17-year low of 1,561 per dollar.
But why now?
Because their currencies are falling at a record pace. The yen hit a 40-year low below 163 this month.
The Iran war pushed oil up, and a weak currency makes every imported barrel cost more.
But Japan has been doing this for years. What's important is US Government's involvement in this.
Nikkei reported that US authorities conducted rate checks on the yen, which is when a central bank calls dealers to ask for exchange rate quotes.
Central banks normally do this right before they intervene. This is not the first time this year either.
Back in January, the New York Fed reportedly ran a rate check with major banks, and the yen jumped 1.6% in a day on intervention speculation alone.
The yen problem has been on Washington's desk all year.
Japan's top currency official Atsushi Mimura went on record: "We are receiving support from the United States that goes beyond psychological support."
When Asked if that includes rate checks, he said it "would include that as well."
Treasury Secretary Scott Bessent reportedly said the yen "seems very undervalued to me."
None of this confirms the US sold dollars itself. But rate checks plus that statement means Washington at minimum approved the operation.
Why does US involvement change everything?
Because Japan alone always fails. Japan intervened solo in 2022 and 2024.
Both worked for days, then the yen made new lows.
This April and May it spent a record 11.7 trillion yen ($73 billion). The yen still fell to a 40-year low.
Coordinated action is different.
In 1998, Japan's solo interventions failed until the US joined and the yen stabilized. In 1985, the Plaza Accord pushed the dollar down nearly 50% over two years.
Japan has done coordinated intervention with the US or G7 only 5 times since 1985, and most of them marked the turn in the dollar.
And it's not just Japan and Korea. India has been fighting the same battle alone:
- Around $7 billion sold in one day last week, some bankers say $8-9 billion
- $9.76 billion net in March, $8.94 billion in April, $6.1 billion in May
- Around $53 billion net sold in FY26
The rupee is still down almost 6% this year.
Today also showed how stuck Japan is.
The BOJ held rates at 1% even though its own forecast says inflation runs at 2.5% this year. One board member voted for a hike and lost 8-1.
The government doesn't want higher rates because of its own debt costs. Within hours of the hold, the yen fell back above 160.
For assets, there are two sides to this.
Short term, yen strength is a risk.
Hundreds of billions are still borrowed in cheap yen and invested in stocks and crypto.
When the yen jumps suddenly, those loans get repaid by selling assets. In August 2024, one small BOJ hike sent Bitcoin from $64K to $49K in six days.
Long term, dollar weakness is the upside.
The DXY fell 0.8% below 100 on Thursday, its lowest since June 17, helped by US Q2 GDP printing at 1.5% against 2.1% expected.
If interventions like this continue and the dollar keeps weakening, capital moves toward hard assets and risk assets.
What happens next depends on whether the US moves from rate checks to actual selling.
🚨 The U.S. Treasury is preparing to intervene in the Japanese yen.
This is an extraordinary move that could become one of the most consequential currency-market events in decades-
Yet 99% of investors have no idea why it’s happening and how it will impact U.S. markets.
Here’s what you need to know: 🧵
🚨 HISTORIC ALERT: Washington just SOLD EUROS to BUY Japanese YEN in an extremely rare market intervention.
The U.S. is now acting as the BANK OF JAPAN!!
This is concrete proof the Reverse Carry Trade UNWIND is already underway and accelerating FAST.
Trillions in cheap yen-funded bets across the globe are about to get violently crushed. Markets are going to seize up, risk assets will cascade lower, and the pain will be brutal.
They wouldn’t do this unless they were 100% certain the RCT reverse is happening RIGHT NOW.
This is how the 2008 crisis started… but 10x worse.
Brace yourselves!!
Bush Sr was actively involved in this mass genocide/depopulation agenda in Haiti as discussed with Fauci at Bohemian Grove and detailed in TRANCE, Whirled Vision ops. Under MK Ultra mind control, I was used in this dark op, forewarning people of vaccines 35 years. https://t.co/s6C6zdAgpZ
When I released Plandemic 1 on May 4th, 2020, Big Media and its cult members smeared me and Dr. Judy Mikovits as “conspiracy theorists, grifters, grandma killers,” etc.
But what really angered the misguided masses was that we dared to disparage “America’s top doctor,” Anthony Fauci.
Despite his well-recorded history of botching outbreaks and epidemics, he somehow maintained his PR-crafted crown as an American hero.
It didn’t seem to matter that his pushing of an experimental drug known as AZT led to the death of hundreds of thousands of AIDS patients in the 1980s.
Nor did anyone seem to care about his horrible handling of Chronic Fatigue Syndrome in the early 2000s, or his role in the 2009 H1N1 (swine flu) response, where he pushed a vaccine with debilitating side effects, or even the numerous mistakes he made during the Ebola outbreak in 2014.
As satisfying as it is to finally see this mini-monster being publicly flogged, Anthony Fauci is being used as a scapegoat and a distraction.
The timing is suspect.
Just as public awareness expands around the murder of Charlie Kirk, flock cameras, data centers, the merging of militaries, and the conflict with Iran, Fauci is being pushed to center stage.
I won’t be surprised if this ends with our current president somehow shielding Fauci from accountability, because holding him accountable wouldn’t be the best PR for Operation Warp Speed. After all, it was President Trump who awarded Dr. Fauci a Presidential Commendation Medal.
I’m also suspicious of the relentless effort to pin things solely on China. COVID-19 was not a lab leak. It is a bioweapon that was designed to do exactly what it did and continues to do today.
To be clear, I don’t believe the CCP is innocent. They were one of several accomplices. There were multiple governments involved, and factions within the U.S. government are in lockstep with all of them.
What you’re not supposed to know is that while China manufactures the vast majority of material goods we use daily, COVID-19 was made right here in the good ol’ US of A.
Go ’Merica!
If this trial was really about accountability, surely at least one member of the Senate committee would mention Dr. Ralph Baric, the University of North Carolina, Chapel Hill, and Fort Dietrich. 
Interesting how these critical details are always left out of sworn testimony.
Remember when President Trump told us about Hydroxychloroquine and how it was very effective for “Covid” and the fake news mafia twisted every word he said. He also talked about Ivermectin as well.
Anyone telling the truth was censored, mocked and shamed.
They are all complicit in CRIMES AGAINST HUMANITY.
Many still don’t understand what President Trump was fighting. The bio weapon was ALREADY PLANNED AND CREATED. This enemy wanted us STILL, right now, wearing masks and force vaccinated. We would STILL be on lockdown with limited freedom. Yes, STILL TODAY.
They knew many Americans were brainwashed to believe a vaccine would make us safe. President Trump forced the release of it EARLY as it was coming anyway. He tried to tell Americans there was a cure.
He never mandated the vaccine. He needed the country to open immediately or our country would no longer exist. Imagine us still on lockdown. Our country would have fallen and the death and destruction would have been incalculable.
Everyone had a choice. Many said no way. Many were forced or they would lose their job. Many cheerfully and proudly took it and boasted about it with an arrogance that was shocking to me. It’s a war. A war for humanity.
This isn’t about if you did or didn’t take the bioweapon, it’s to UNDERSTAND WHAT PDJT WAS UP AGAINST.
These monsters used Covid as a way to bring in mail in ballots and help overthrow the United States Government. These demons used Covid to depopulate the world with their bioweapon disguised as a vaccine.
Listen to how the media tried so hard to make Trump look bad. ENEMY OF THE PEOPLE!
The truth WILL BE KNOWN.
THEY DO NOT GET AWAY WITH IT. ✝️
🚨 Scott Bessent just pointed toward a Bretton Woods 2.0 and is telling people to get ready for it.
He said: “The banking system created after WWII unleashed global prosperity. Why not recreate it now?”
He’s openly talking about “rewiring the banking and financial system.”
The Iran-US “war” isn’t about nukes or oil…
It’s the final engineered crash to kill the old dollar system and install a brand-new global financial order.
Every past crash (1929, 2008, COVID) was deliberately triggered by central banks + the IMF.
They’re doing it again. Wake up.
The people designing this are openly laying out plans for a new financial architecture. As The Great Taking illustrates, these kinds of resets often shift ownership.
He also warned: “Build your safety zone and secure direct ownership now, don’t wait to find out where you fit in their new system.”