The Japanese currency is COLLAPSING

The Japanese yen is crashing right now and the U.S. officially intervened because if the yen collapses the U.S. government could go bankrupt. Let me explain. The reason the yen is crashing is because interest rates in the country have been near zero for over a decade and the currency has just gotten weaker and weaker. But just a couple days ago they had to do something massive. Japan has been trying to stop this alone for months. In April and May it spent a record 11.7 trillion yen ($73 billion). The yen made new lows anyway. Then everything changed in the last 24 hours. - Thursday night, in New York hours, USD/JPY crashed from 162.80 to 157.95 in about an hour - A 3.3% move, the yen's biggest one day gain in almost two years - South Korea sold dollars won hit a 9-month high. USD/JPY falling means the dollar is stronger. The government alone has spent $73 billion dollars back buying their own currency. Doing selling dollars as well as euros. Not things the U.S. had to do a lot. BREAKING: The US Treasury sold euros to buy Japanese yen on Friday, per FT. The New York Fed executed the sales on the Treasury's behalf, through Goldman Sachs and Morgan Stanley. Notably, the Fed drew down euro reserves rather than dollars to fund the yen price. It marks the first time the U.S. has jointly intervened to buy yen in 24 years, after the currency fell to a 32-year low against the dollar since 1986. Because a lot of leverage over. See, Japan is the largest owner of U.S. Treasury bonds. And currency themselves. The U.S. Treasury yield jumps to highest level since the run-up to the Global Financial Crisis. Because me. The 30 year Treasury yield is over 5.276%. Has a level that has not been since financial crisis. Of course, U.S. borrowing costs are already under pressure. The 30-year Treasury yield just climbed above 5.2%, which is its highest level since 2007. At the same time, roughly one-third of U.S. government debt must be refinanced within the next year. The government will have to roll trillions of dollars of debt at today's much higher interest rates... By buying yen alongside Japan trying to stabilize the currency, they are trying to sell even more Treasury American borrowing costs. The yen may be Japan's currency collapse would quickly be an interest-rate problem. Already debt happened starts treasuries. Yield rates. But within. The U.S. government has to refinance a third national had these the much unserviceable. Entire economy down.