It’s true that the carry trade unwinding suddenly would be…traumatic (and debatably the root cause of the rate spike that killed SVB a few years ago), but it could be managed gradually, and must be done to bring Japan back from the brink.

> So, I believe the US is pressuring Japan NOT to raise rates, i.e. to save the U.S.'s own currency.

The US is pressuring the BoJ not to liquidate US debt to get the USD needed to buy Yen. It only tangentially relates to bond yields, and has nothing to do with defending the USD.

It would be better for the US if Japan just normalized rates, but Japanese politicians are resistant.

The carry trade hides a lot of US debt, too. Why would the US only care about the US debt held sovereignly by Japan and not by the banks and hedgefunds executing the carry trade?

If the US is not trying to defend the US dollar, why'd they use Euros and not USD to prop up the Yen, and also why surprise everybody doing so?

And, if it is better for the US if Japan normalized rates, then why did the US buy yen at all? According to you, just telling Japan to raise rates would be better, right?