The Dollar Ain't What It Used to Be! The Recent Yen Intervention Is Telling Us Something -

Dollar dominance is eroding.
And recent moves by the U.S. and Japan to support the yen underscore this reality.
On this week's Midweek Memo podcast, Mike Maharrey explains the recent intervention to support the yen and why it signals the dollar ain't what it used to be. He explains the mechanics of the intervention, what it tells us about the state of the bond market, why it looks bad for the greenback, and what it could mean for gold. 
In this episode, Mike also talks about Rand Paul's field trip to Fort Knox and why his insistence that he knows the gold is all there is ridiculous.
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Mike opens the show recalling a "back in my day" conversation he recently had with his kids.
<blockquote>
"Somehow, we got to talking about writing checks, and I was trying to explain the tedious task of balancing a checkbook when you only got a statement once a month. Nobody does that anymore, right? At least nobody under the age of about 70. We just go online and check the balance. Things generally go through instantly, so we don’t have to worry about the lawn guy waiting two weeks to deposit our check.
"So, let’s go back to that day. Imagine I told you I had $100,000 in my account. You might be a little skeptical, so you say, “Let me see your bank statement.” I say, “Nah, it’s all there.” This keeps repeating. I brag about my big bank balance but refuse to ever show any proof. Then one day, I casually mention I never balance my checkbook. You’d probably ask how I can know that I have $100,000 if I never balance the checkbook. What if I told you, trust me. That money is there.
"Now, there might be $100,000 in that account. Or not. Here’s my question. How much faith would you have in my bank balance? You’d probably feel a bit skeptical. Even if you generally trusted me, you’d still think the whole thing was a little sketchy. You might be thinking, if it’s really there, why not show me?
"This is kind of how I feel about the gold in Fort Knox. I tend to think it’s all there. But I don’t know that it is. And the fact that the people wig out at the mere suggestion of a formal audit adds to my suspicion.
"Speaking of which, what’s up with Rand Paul? And why did he just let himself become Secretary of the Treasury Scott Bessent’s little pawn? I’m going to delve into that question today, and I also want to explain what’s going on in the currency markets. Some moves the US made recently to support the Japanese currency reveal that the dollar’s reserve status ain’t what it used to be."
</blockquote>
Mike notes that the U.S. sold euros to buy yen and support the Japanese currency. 
<blockquote>
"The way the U.S. executed the move reveals that the dollar’s reserve status is slowly melting away. That’s really bad news for a country that depends on demand for its currency to support its borrowing and spending."
</blockquote>
Mike explains exactly what the U.S. did, noting that U.C. Berkeley economics professor Barry Eichengreen wrote an op-ed for the Financial Times arguing that the way the Treasury executed this currency intervention reveals a deeper concern.
<blockquote>
"The message is that U.S. Treasury Secretary Scott Bessent & Co worried that selling dollar securities to prop up the yen would put additional strain on the long end of the U.S. Treasury market.”
</blockquote>
Mike explains why the sagging demand for U.S. Treasuries is a huge problem for U.S. policymakers because it will rapidly increase the country's already skyrocketing interest expense.  
He goes on to outline the mechanics of currency intervention to illuminate exactly what the U.S. did. Initially, the Japanese treasury was selling U.S. Treasuries for dollars and then selling the dollars to buy yen. 
<blockquote>
"Bessent doesn’t want Japan to sell Treasuries, so it offers to step in. If the U.S. buys yen, it kills two birds with one stone. The yen gets a boost without increasing the supply of Treasuries in the open market and raising yields. In effect, U.S. intervention reduces the amount of dollars Japan needs to raise by liquidating Treasuries."
</blockquote>
But Mike emphasizes that the U.S. wasn't just stepping in to help a friend. 
<blockquote>
"It was trying to keep a lid on its own problem – a tanking Treasury market even as the U.S. needs to borrow more to keep up with ever-increasing spending."
</blockquote>
Mike points out that Japan's agreement to use the FIMA facility to raise dollars also signals Bessent's desire to keep Japan from selling U.S. debt. This facility allows Japan to borrow dollars using Treasuries as collateral. 
Eichengreen said both the U.S. intervention and Japan’s willingness to use FIMA indicate “the dollar’s status as a reserve currency is not what it used to be.”
As a Fortune article put it, this "strikes at the very heart of dollar dominance."
While the situation is bearish for the dollar, it is bullish for gold. When countries seek a reserve alternative that they can use without U.S. interference, gold ranks at the top of the list.
Mike then pivots to Sen. Rand Paul, who visited Fort Knox this week and insisted that all the gold is there. 
<blockquote>
"With all due respect, Sen. Paul, it is absolutely impossible for you to make that statement after wandering around inside a vault for a few hours."
</blockquote>
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Mike notes that between Bessent’s statements last month and Paul’s propaganda tour, it’s almost as if there is a concerted effort to quiet calls for a legitimate audit of U.S. gold reserves.
<blockquote>
"And who better to calm those voices than Rand, whose constituency is among the most vocal supporters of sound money?"
</blockquote>
Mike wasn't willing to speculate as to why Paul was willing to back up Bessent's claim that the gold is all there. 
<blockquote>
"As my friend Dave Benner put it, it’s truly sad that the guy who rightly blasted the 'trust the science' narrative is now shouting 'trust the financiers!' Politics is politics, I guess. But don’t allow this publicity stunt to take your eyes off the need for a legitimate audit."
</blockquote>
Mike explains what a real audit entails.
<blockquote>
"If you aren’t familiar with general accounting principles, an audit involves a tad bit more than walking around on a guided tour."
</blockquote>
Mike then asks the "$6 billion question."
<blockquote>
"Why won't they just audit the gold? Why is there such a persistent refusal to even entertain the idea? In fact, people like me are ridiculed for suggesting we need an audit. I guess we're just supposed to trust them because it's the government? If you ask me, that's an even bigger reason not to trust them. If a private business refused to audit its books, it would get shut down. But Uncle Sam plays by different rules."
</blockquote>
This raises another question.
So, what's it going to be? Are we going to take Bessent's and Paul's word for it? Or is somebody finally going to step up and do the right thing? Since politicians aren’t known for doing the right thing – at least not for us – you have to protect yourselves. You certainly can’t trust them to maintain the value of your money."
Mike wraps up the show with a call to action. Since we know the government will continue to devalue our money, we need to preserve our wealth by saving in real money — gold and silver. Mike urges his audience to call 800-800-1865 and talk with a Money Metals precious metals specialist today.
<h2>Articles Mentioned in the Show</h2>
<a href="https://www.moneymetals.com/news/2026/07/18/the-ramifications-of-a-long-term-bond-bear-market-005079">Are We in the Early Stages of a Long-Term Bond Bear Market? And What If We Are?</a>
<a href="https://www.moneymetals.com/news/2026/08/07/surging-asian-gold-demand-could-signal-a-structural-wealth-shift-005120">Surging Asian Gold Demand Could Signal a "Structural Wealth Shift"</a>
<a href="https://www.moneymetals.com/news/2026/08/02/yield-curve-twist-reveals-markets-losing-confidence-in-feds-commitment-to-slaying-inflation-005106">Yield Curve Twist Reveals Markets Losing Confidence in Fed's Commitment to Slaying Inflation</a>

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