Japan's $96 Billion Yen Intervention Raises Questions About Effectiveness

Japan has spent $96.5 billion intervening in currency markets since July 30, according to data from the Finance Ministry.

This includes a joint intervention with the United States, the first such joint effort in 15 years.

The US contribution is estimated at $5-$10 billion.

These massive interventions are aimed at easing short-term pressure on interest rates and preventing a collapse in investor confidence that could ripple across global bond markets.

The hope is to help Japan overcome its debt crisis, which has the highest debt-to-GDP ratio among developed countries.