The Fed's Yen Intervention, Treasury Market Strain, and the Case for Silver

In this appearance on the And We Know Show, Dr. Kirk Elliott discusses the Federal Reserve's rare intervention in foreign currency markets to help stabilize the Japanese yen, a move he ties to concerns that Japan might otherwise reduce its holdings of US treasuries. He walks through the history of the Bretton Woods agreement and the dollar's role as the world's reserve currency, then draws a parallel to Japan's decades-long near-zero interest rate policy and the unwind of the yen carry trade that has helped fund global growth since the late 1990s. Dr. Kirk explains how this dynamic, combined with a large volume of short-term US government debt coming due for refinancing, points toward continued inflationary pressure. He notes that inflationary environments have historically coincided with rising interest in gold and silver, and that recent weeks have seen notable price appreciation in silver. Dr. Kirk frames precious metals as assets investors may want to consider as part of a long-term store of value strategy, and invites viewers to schedule a consultation with the KEPM team.