This editorial is from this week’s edition of the newsletter Week in Review, sent to subscribers on Friday. Subscribe to the newsletter to get this weekly editorial the second it’s finished. The newsletter also includes the biggest stories of the week, with a comment on each story.Last Friday, Bitcoin dropped from $64.7K to $62.8K, but seven days later it ground its way back up to $64.8K like nothing ever happened. Not bad when taken in isolation. Unfortunately, comparison is the thief of joy. While Bitcoin puttered, U.S. stocks staged a risk-on rally as Trump called off Iran strikes (how many times now?) and oil fell. The Dow ripped past 54,000 for the first time ever, and the S&P reached an all-time high too at 7,737. The macro story of the week was all about Japan. Japan will use the International Repo Facility to support the yen rather than sell U.S. Treasuries, a less destabilizing option. Japanese yields surged to start the week, leaving some unconvinced by the intervention. The Kobeissi Letter argued the carry trade is dying. Joseph Wang thinks Treasury has spent all the ammunition in its Exchange Stabilization Fund. Mark Sobel disagrees, noting the ESF holds dollars and has many ways to mobilize its balance sheet. The yen’s weakness has led some to mistakenly call the Japanese government’s fiscal situation precarious. Brad Setser pointed out Japan is neither spending nor printing: one of the smallest fiscal deficits in the G-7 and a projected primary surplus this year. Secretary Bessent directly attacked Nick Timiraos in response to his Wall Street Journal piece titled, “Why Bessent Is Leaning on the Fed to Help Prop Up Japan’s Currency.” Some cheered the burn; others found it dumb, and in line with this admin.