Yup. That's $777,000,000,000 of hard cold US bucks that Japan is holding. As everyone knows, the Japanese have been buying the greenback in order to keep the buck above the 110 yen rate. With so much US currency in control of the Japanese government, does this grant it future leverage over its partnership? If not, why not? Everyone keeps on harping on the need for the Japanese manufacturers to operate in an economic world where it can continue to export its wares abroad. Since Japan is still primarily an export-driven economy, the need for a weaker yen or conversely, a stronger yen, one must question the long term effects of such a monetary policy.
(Japan Times.)
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