Reply #1: A week and some change ago the Yen started surging against the dollar directly after.. [View All]

[Poll_Blind]

..the quake on rumors that without enough Yen, insurers and the Japanese government might have to start selling off U.S. securities to get the cash they needed. What I recall reading initially (probably 4-5 days ago) is that Japan's insurers had about ¥1 trillion in reserve and that the costs were not expected to go over ¥600 billion. So, currency disaster (for both the U.S. and Japan, at least insofar as Japan can use an undervalued currency to export more easily) averted. Then yen started going down after that rumor was quashed.

However, now that the levels are getting closer to what Japanese interests can possibly cover, it's interesting to wonder exactly how both nations are going to get around Japan selling U.S. debt to get more cash if they need it.

?

PB