We've reported previously about the U.S. effort to help Japan prop up the yen.
The Trump administration sold euros and bought yen; they didn't give Japan any money. It was also in our own interests because we share deep economic ties and they have a lot of holdings in U.S. Treasuries, stocks, and other assets — nearly $3 trillion in all — which could mean that turmoil in their markets could also adversely affect us. So we are helping them, but also protecting ourselves as well.
That apparently caught the attention of Sen. Elizabeth Warren (D-MA), the ranking Democrat on the Senate Banking Committee, who argued that American taxpayers could ultimately be on the hook if Japan proves unable to repay the Treasury.
That's when Treasury Secretary Scott Bessent decimated her with one heck of an epic letter, explaining she had no idea what she was talking about.
In her latest sciolistic letter to me, @SenWarren made it clear that she knows even less about foreign exchange markets than she does about banking.
— Treasury Secretary Scott Bessent (@SecScottBessent) August 28, 2026
What is equally shocking, but not surprising: not a single member of the media mob has a rudimentary-enough level of financial… pic.twitter.com/0mmp2tapqJ
In her latest sciolistic letter to me, @SenWarren made it clear that she knows even less about foreign exchange markets than she does about banking.
What is equally shocking, but not surprising: not a single member of the media mob has a rudimentary-enough level of financial market literacy to spot her remedial error.
To reiterate: under @POTUS, the United States delivers for America’s trusted partners.
For a fuller explanation, I recommend Senator Warren take any entry level course in international finance for her and her staff, or I can personally give her a tutorial on Foreign Exchange for Dummies. Although I am not holding my breath, I hope her next letter will demonstrate that she has learned the difference between a currency purchase and a swap or a loan.
In the letter, he explained that since we gave them nothing, we risked nothing.
“Treasury exchanged existing Exchange Stabilization Fund foreign-currency assets for yen,” he wrote.
“No new congressional appropriation was involved, and no credit was extended to Japan. Japan owes Treasury nothing,” added Bessent, who previously earned his fortune as a currency trader.
“There is therefore no risk that Japan will fail to repay a debt that does not exist.”
He further pointed out the aim was to head off problems.
“Disorderly yen markets can trigger forced unwinds, which could destabilize global markets and ultimately raise borrowing costs for American families and businesses,” he explained.
“The best-managed crisis is the one that never happens," he observed. “You, by contrast, appear to view preventable crises not as failures to avert but as welcome opportunities to expand government control — with ordinary Americans paying the price.”
He said the legal question she had raised in her letter was answered by the statute "in your own footnote" and "Treasury’s legal analysis begins with reading the statute. I recommend you try the same.”
“The American people deserve oversight grounded in facts rather than slogans,” he wrote.
“Although I am not holding my breath, I hope your next letter will demonstrate that you have learned the difference between a currency purchase and a swap or a loan.”
Oh, my, have you ever seen someone so effectively eviscerated? This is why people appreciate Bessent so much; he is so savage.
But it's so true; she doesn't understand what she's talking about.
Broooootal by Bessent.
— Laura Ingraham (@IngrahamAngle) August 28, 2026
Poor Liz. Ignorant media. https://t.co/76pWpxnvkv
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