엔 투기꾼에서 방어자로 변신한 미 재무장관 [유레카]

On the last day of January, a photograph of the White House meeting room was captured, causing ripples in the foreign exchange market. The note placed in front of the Treasury Secretary's desk read, "Your task: Buy $50 billion to $100 billion worth of Japanese yen." This message was unmistakable to photographers from the White House press corps.

The note signaled that the Treasury Department would intervene in the foreign exchange market to purchase yen, and indeed, a joint US-Japanese effort was made. This move was treated as a public warning to the yen speculator crowd to refrain from selling yen, reading as a desperate attempt to prevent a Japanese "national debt crisis."

The scene of Mr. Bennett, the Treasury Secretary, posturing as a defender of the yen after his previous involvement in manipulating the British pound in 1992 and profiting from yen depreciation in the early 2010s felt ironic. This incident, the first of its kind in nearly 30 years since 1998, reflects Bennett's confidence in his ability to defend the yen, but more importantly, it underscores the precarious state of affairs faced by both the United States and Japan, both of which are burdened with astronomical national debts.

Bennett stated that the goal was to defend the yen, but market analysts believe the ultimate aim is to protect US Treasury interest rates, which have reached unprecedented heights, with 30-year bonds currently at 5.2%, the highest in 19 years. The fact that Japan's Bank of Japan, one of the largest holders of US Treasuries with around $1 trillion, is buying dollars to defend the yen raises concerns that this could potentially exacerbate the already high interest rates.

This move by the Japanese bank could serve as a catalyst for speculators of the yen. With the US government heavily reliant on debt, it is difficult for the government to bear the burden of servicing its debt. Bennett's efforts to defend the yen may not have the intended long-term effects, as the recovery from the all-time low of 164 yen to 159 yen this time around is likely to be temporary.

Bennett, aware of this, acknowledges that the temporary nature of the effects of the foreign exchange intervention alone may not be sufficient.