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Robin Brooks, industry influencer, argues that Japan's official foreign exchange intervention is ineffective because different government agencies work at cross purposes.
He explains that while the Ministry of Finance (MoF) buys Yen to strengthen it, the Bank of Japan (BoJ) is simultaneously purchasing Japanese government bonds (JGBs), a move that weakens the Yen. Brooks characterizes this situation as Japan playing chess against itself, with no clear winner in their currency strategy.
Brooks has previously warned about risks stemming from uncontrolled fiscal policy and persistent inflation in global debt markets. He has also noted that foreign inflows into the U.S. hit record levels despite tariff concerns. His comments often focus on how policy decisions shape global capital flows.