Recently, the Japanese yen has been heavily shorted, but the Japanese authorities seem to be merely engaging in verbal warfare, seemingly doing nothing as they watch the yen plummet and the wealth of the Japanese people depreciate significantly.

An interesting question arises: with a substantial amount of US dollar foreign exchange reserves and the largest holdings of US debt, the Japanese could certainly intervene to save the yen. Are they afraid to oppose the United States, or are they biding their time for some other purpose?

This plunge in the yen has not only broken through the Bank of Japan's intervention line of 152 but has also surpassed the significant threshold of 154, setting a record low since 1990.

Société Générale even believes that if the Federal Reserve's interest rate cut has to wait, there is a risk that the yen could fall below 170.

The bank's Chief Currency Strategist, Kit Juckes, stated that since the yen exchange rate broke below 150, international short sellers have become bolder.

Now, even the most professional experts can no longer clearly analyze whether the main cause of the yen's plummet is the dollar's non-interest rate cut or international short sellers betting against the yen.

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However, these details are no longer important. What matters is that a major economy has seen its exchange rate plummet in just a few days, which is an unparalleled humiliation.

This incident has stripped Japan of its fig leaf, revealing to the world the fact that they lack monetary sovereignty.

At such a time, the Americans still invited Japanese Prime Minister Fumio Kishida to the United States, where he was ceremoniously treated with the highest honors as a state guest.

When Fumio Kishida spoke with a trembling voice in the US Congress, did he receive a prior request from the Americans not to intervene in the yen's devaluation? Because that would signify Japan's attempt to abandon American free-market values?If he stubbornly insists that there is no such thing, or even claims that the United States will not interfere with Japan's independent decision-making, then how does he explain that several high-ranking Japanese officials, including himself, have repeatedly engaged in verbal disputes with the phrase "all options are on the table," yet nothing has been done?

The core question arises: in this yen incident, does Japan have the capability to fight back?

Of course, it does, and there are two methods: either sell U.S. Treasury bonds to intervene in the market, or rapidly raise interest rates.

Japan holds $1.356 trillion in foreign exchange reserves, with $1.168 trillion invested in U.S. Treasury bonds, which can be said to be well-armed and very powerful. International speculators should not dare to challenge the Japanese government.

It is important to note that in 2022, Japan intervened in the foreign exchange market three times, using only a little over $60 billion in funds.

It's all about having money, and it's a bet that you dare not, this is a blatant humiliation of Japan by international speculators.

If Japan were to be resolute and sell a portion of its $1.1 trillion in U.S. Treasury bonds, using more than $300 billion in funds to hedge against international speculators, could it not win?

If $300 billion is not enough to win, what about the remaining hundreds of billions in U.S. Treasury bonds? Is it possible to sell them all?

Obviously, it is not possible. The U.S. Treasury crisis is so severe at present that even selling $100 million would not be agreed upon by the Americans. The Japanese have been increasing their holdings of U.S. Treasury bonds for five consecutive months.

If Japan cannot sell all its U.S. Treasury bonds, the Bank of Japan could raise interest rates to 5% to save the yen.However, Americans cannot agree more that the yen is a subsidiary of the US dollar. If one is prepared to save the US dollar, how could they set up obstacles?

The biggest issue is that raising interest rates to 5% is not advisable, as it would harm the fragile Japanese economy.

Additionally, if the yen appreciates, the US Dollar Index is likely to fall, which Americans would not accept after having worked so hard to raise it.

Some argue that the Bank of Japan is essentially a branch of the Federal Reserve in Japan, and the yen serves as a financial reservoir set up by the US in Japan. While helping Americans plunder global wealth, it is always ready to hedge against US dollar risks.

Do the Japanese really lack the courage to defy the US?

After World War II, Japan became an enigma. The once-dominant and arrogant nature that swept across Asia is nowhere to be found.

Some say that the Japanese are good at enduring, but when you realize that they have endured for decades without any sign of resistance, you begin to doubt your judgment.

Others argue that during World War II, the young and aggressive faction in Japan was lured into rebellion and then annihilated. Later, in the 1980s with the Plaza Accord, Japan's dominant industries were harvested, and the Japanese suffered another defeat, completely breaking their spirit.

Lu Qiyuan said that Japan was defeated twice, once in World War II and the other time in the Heisei era.

Have the Japanese ever resisted? Of course, they have. During the glorious period of the Japanese economy in the 1980s, they gradually became more vocal, with some even boasting about buying half of America.Later Prime Minister Shinzo Abe governed for 9 years, attempting to lead Japan's revival while actively promoting the East Asian economic circle and even the "Asian Yuan."

However, these struggles were timely detected by the Americans and then ruthlessly extinguished, with the meritorious figure Shinzo Abe even losing his life.

The subsequent Prime Minister Fumio Kishida became incredibly docile, obedient to the Americans, and even went so far as to discharge nuclear-contaminated water into the sea.

It is estimated that the Japanese people themselves may not be able to distinguish whether they are enduring and waiting for the right moment or have been domesticated into servility over the decades.

In fact, apart from not daring to oppose the United States, Japan also has its own difficulties. If the Bank of Japan intervenes, it may lead to unpredictable consequences.

Some say that the Japanese may also hope for the depreciation of the yen to boost Japanese exports and revive the domestic economy, which has been a long-cherished opportunity for them.

However, the current decline in the yen has far exceeded the psychological expectations of the Japanese, even turning into international short sellers brutally slapping the Japanese in the face.