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Peter Schiff on Yosano’s bizarre comments about US Treasuries

June 13, 2009
By Ken Worsley


This morning I saw a Bloomberg article with a not-so-surprising headline: Purchases of U.S. Treasuries will continue, Yosano says.

When I started reading the article, however, I thought it was reporting on a different universe. Here is part of what Yosano had to say to reporters in Tokyo prior to leaving for the G8 meeting of finance ministers in Italy:

We have complete trust in the fact that the U.S. views its strong-dollar policy as fundamental. So our trust in U.S. Treasuries is absolutely unshakable…We have complete faith in U.S. economic and fiscal policy. The dollar’s position as the world’s reserve currency isn’t under threat.

What the heck is a stong-dollar policy? Why these odd comments about faith in US economic and fiscal policy right now? I just assumed Yosano wanted to get on well with Geithner at the meetings.

Then, reader and fellow blogger Matt Dioguardi sent me this link:

“The strong dollar policy is like the Loch Ness Monster…no one’s ever seen it.”

Turning to a slightly more bizarre story, what’s come of the ‘Japanese’ pair reportedly held with $134 billion in U.S. bonds?

Filed Under Finance, Politics 

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Comments

4 Responses to “Peter Schiff on Yosano’s bizarre comments about US Treasuries”

  1. Matt on June 16th, 2009 6:02 am

    Has the Japanese government confirmed that they are, indeed, Japanese? I couldn’t figure out why this wasn’t a simple case of yes or no. Is there some reason no to answer?

    As for the strong dollar policy, here’s my take - they (USG) have one when they need to raise obscene amounts of money. Otherwise, they let the dollar fall to goose equities. Oddly enough, they are introducing some serious rollover risk, with many sovereigns transferring into the front of the curve, and the Treasury feeding sovereign appetites there.

  2. Ken Worsley on June 16th, 2009 2:18 pm

    Matt, I haven’t seen any confirmation yet. The story seems to have just disappeared. There was a bit of discussion about it yesterday on Twitter, but unless something has come up in the past couple of hours, it’s still a mystery.

  3. David redden on July 18th, 2009 5:02 pm

    If you look at all the japanese foreclosure tours, their statement makes perfect sense,

    They are using their USD’s to buy up US foreclosed property for pennies on the dollar.

    If they destroy the value of the dollar, their saved USD’s will lose value, and americans will not accept them as valuable for their property.

    The Japanese know exactly what they doing. And so do the Chinese.

  4. Billy-Buck on July 23rd, 2009 5:13 pm

    This is not a statement on a “strong dollar” but a statment on a weak yen.

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