I don't get it, I really don't. E.g., in today's 6mo US debt auction, 40% of the issuance was absorbed by Foreign Central Banks. Not by "real" investors, just mindless, price-insensitive buying by government agencies (foreign central banks). Also today, ALL commodities (except the "monetary metals" of gold/silver) are ON FIRE: oil +1.4% natural gas +4.5% corn +8% orange juice +5.5% soybeans +5.8% wheat +4.3% lean hogs +2.8% copper +2.9% etc At the same time, all currency pairs vs USD are FALLING. Not just today, but falling hard for MONTHS. So these basic goods become EVEN MORE EXPENSIVE for the citizens of those countries, day after day. Not just energy/oil/natgas. So, WHAT ARE those countries thinking (mainly Japan in this case), when they're continuing "vendor financing" of US absorbing and rolling-over USDs held by their Central Bank, YET let their own currencies DROP even lower every day, despite the huge rise in practically all commodities. Japan could liquidate parts or whole of the 750bn USD (largest reserves of any country in the world), "forcibly" accumulated during previous years' interventions (most during 2003-2004), let USD/Yen go to 105 and soften the blow of price inflation on their citizens. (Note: Unless the Japanese Ministry of Truth has managed to convice its subjects (like the respective one in US) that despite the commodity index going up +40% since Jan-2005 still means no inflation.) TANKAN report 1-July-2005 said big Japanese manufacturers were still counting for USD/JPY at 103-104 for 2005 (and right now it's at 112), so it can't possibly be in order to "protect exports" by employing mercantilistic policy. Can someone help me understand this "Japanese conundrum"?