After this latest episode, I'd say the odds just increased significantly about some truth behind the rumours of Japan to soon dump some $100 billion worth of U.S. Treasuries...

Regards - VHF

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US-Japan Rift Grows As Obama Snubs Prime Minister Hatoyama In Copenhagen

Joe Weisenthal

December 10, 2009

Interesting report from Japan Times on the increasing isolation of Japan, which is losing its connection to its only real ally in the world -- The United States. Apparently, relatively new Prime Minister Yukio Hatoyama had hoped to meet with Obama in Copehnhagen in regards to moving a controversial base.

But White House press secretary Robert Gibbs said Wednesday in Washington that because the two national leaders met just last month in Tokyo to discuss the planned relocation of a U.S. Marine base in Okinawa, it was probably unnecessary to meet again on the sidelines of the global climate conference in Copenhagen.

"I think this is appropriately being handled right now with our ambassador there and others in terms of making progress," Gibbs said. "I think this was discussed just a couple of weeks ago and I think the working group working, we would believe, is the best way to continue that progress."

This rift (and apparent snub) comes amid rumors of Japan intending to dump $100 billion of its Treasury holdings. We've been skeptical of that -- and still are; after all, Japan wants to weaken its yen -- but the drift apart seems quite clear.