Q&A #213
@Albertletoride-hz7oj: Despite its simplistic views, MMT focuses on banks and balance sheets, unlike mainstream economics. Could it be a decent starting point for someone who doesn’t know anything about finance? @ianrayner7522: Hi Jeff - I have so many questions about the USD / Yen intervention and the interaction between the BOJ, Treaury, and the Fed. @ianrayner7522: First - what are the different levers the Fed and Treasury can pull and how do they act - does Treasury act directly or does the Fed act on their behalf? @dubiousdandy904: If the largest Japanese pension funds can meet their future yen liabilities with current nominal yields of JGBs, would that allocation negatively impact global eurodollar redistribution? @ianrayner7522: I have heard suggestions that the intervention was to help support the Yen without BOJ selling treasuries - what do you think of that idea? @jespitia88: Has the increased stress in private credit affected the repo market and collateral in any way? @ianrayner7522: I have also heard it suggested this was a stealth means of monetizing the debt which will lead to inflation - does that make any sense? @gratefuldad327: I'm assuming FIMA removes concern that Japan will sell USTs en masse because the have to? I heard someone say this why we intervened...to prevent UST selloff by Japan. @ianrayner7522: On the monetizing US debt issue - your answer makes sense to me, it just sounded like the usual "they're printing money" reflex @gratefuldad327: Patiently waiting for UST duration to pay. Seems like when the facade finally breaks, rates will go down. Wish I got better entries, but nice yield in the meantime...
