US seized Japan's central bank policy
Scott Bessent just took control of the Bank of Japan's operations out of Washington. A BoJ banker warned their stabilization measures would "affect people globally" and apologized in advance. Hours later, the US stepped in and shut it down.
Japan's forced to use the International Repo Facility to prop up the Yen without dumping its US Treasury holdings. Temporary theater. Overnight loans at higher than market rates, a $60 billion cap that's meaningless for actual crisis defense, endless rollovers the US can yank anytime.
Bessent kicked the biggest financial can in history off a cliff. The delayed unwind will be catastrophic when it lands.
Japan's now racing to pass crypto-friendly legislation (Bitcoin, XRP as corporate treasury assets, Solana and Ondo for tokenization). They're building an escape hatch from the dollar-dominated trap before the bill comes due.
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Source
x.com