# The Insane US-Japan Currency Bailout

> Patrick Boyle explains why the U.S. Treasury joined Japan in buying yen for the first time since 1998, arguing that the intervention was less an act of friendship than an effort to prevent Japan—the largest foreign holder of U.S. government debt—from selling Treasuries to finance its own currency defense. The episode connects the yen carry trade, Scott Bessent’s preference for short-term government borrowing, the fading convenience yield on U.S. debt, and the uncomfortable dependence of American borrowing costs on foreign demand.

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Last updated: 2026-08-15