QUESTION: Marty, care to comment of your old adversary Bessent and his latest boast “I am the house” warning traders not to bet against him? They called you Mr. Yen and Milton Friedman called you the World’s Ambassador. Socrates seems to take issue with Bessent. They never learn.
K
ANSWER: He is trying to use his position to manipulate markets as usual. This is why these people hated me because they judged me by themselves. I would say they would lose, and when they did, they claimed I had greater influence than all the bribes they could pay. They even had the CFTC file a subpoena demanding I turn over a list of all my clients so they could prove I was manipulating the world economy. My lawyer asked where is the statute that says I could not manipulate the entire world? The judge laughed and threw that out of court. They lobbied to to try to shut down our forecasting because they try to bribe everyone for the guaranteed trade when I was the only real trader.
The dollar has risen against the yen for 15 years. Bessent thinks for trade purposes that he can talk the dollar down. Well, they tried that in 1985 and blew the world up when the G7 stood up and claimed that was it, the dollar fell far enough. As soon as the dollar fell lower, the world saw that the G7 could NOT dictate to the world what value a currency should be. When they even came out at the Plaza Accord, the trend had already turned on the dollar. They did NOT change its direction.
I wrote to President Reagan and I warned that they would cause a crase within 2 years. They laughed because they had the power, or so they thought. When the crash came in 1987, they were forced to call me in. I had to keep the staff late so we could have advice for President Reagan and what to say. The capital flows went crazy and the Japanese dumped dollar assets when the dollar continued lower after the Louvre Accord pronouncement that the dollar had fallen far enough. They were wrong, and we got the crash.
Robert Rubin was doing the same thing in 1997. I wrote to him on May 28th, 1997 and warned him he too would cause a crash. At least he responded to me. I wrote to Bessent but old grudges never die. He did NOT respond. They refuse to admit just maybe I created a computer that actually works and it was not my personal influence. Admitting that means they have been wrong for decades.
The Asian Currency Crisis began on schedule a few weeks later. While they do not like me because they always prove to be wrong, China called me in and I flew to Bejing to meet with the central bank. They respected my computer and announced that they have adopted “capital flow analysis.” When I got back, people from the Treasury and the Fed called and wanted to know my opinion since I was the first American to be called in by the People’s Bank of China. I said it was interesting. Everyone I had met were TRADERS who had been sent to work on dealing desks in NY, London, Tokyo, and returned to run the bank. My comment was, they ONLY hired people with experience.
So here we go again. The support on the yen for the close of 2026 lies at 154.20 while closing resistance stands at 160. The yen can move to 366 against the dollar by the Panic Cycle for 2030. The mere fact that Bessent is trying to talk the dollar down against the yen PROVES the underlying trend in motion. Like the Louvre Accord, making a public statement like this when you are the Treasury instead to manipulating markets with a herd of hedge funds back then is substantially different. When he is proven wrong, the world will lose confidence in his or any government’s ability to manipulate society, which is why they are all at least worship Marx in the closet who knighted them as the mover and shakers of the world at will endorsed by Keynes.
