Japan Buying Oil in Yen? MBS Heading to Japan in Two Weeks.

As I have been discussing in prior posts, I think that a deal has possibly been made allowing Japan to buy oil in Yen so that Japan can print yen to buy oil in a way that does not force them to sell USTs in order to raise the US$ necessary to purchase more expensive energy. The US has blessed this arrangement as it is now in the US strategic interest to slow down the UST selling by foreign holders of Treasuries.

If Japan can buy oil in yen, they will be able to tolerate a much weaker JPY because it won’t lead to the imported inflation that they are so concerned about. Since they have open capital account and can’t raise interest rates because they have too much govt debt to GDP, weaker yen is the only option to help improve economic growth.

Saudi will take yen and they will buy Japan goods and services with it, invest excesses in Japanese FDI, property, and stocks. MBS is heading to Japan in two weeks to go on a shopping spree. Any leftover trade balances can be settled in gold. This is a similar setup that I believe Saudi has with China

Yellen has too many USTs to sell and needs to slow down others selling too.

This is how a new monetary order can come about where gold is continuing to be re-introduced as a global neutral reserve settlement asset.

$jpy is gonna go much higher I think. Gold as well.