<What is the motivation to save? Or, at least, what is the motivation to save money in bank accounts, as opposed to putting the money in a safe-deposit box, safe, mattress, buried in the back yard, invested in gold bullion, stocks, bonds, real-estate, etc?>
Charles, thus the dilema. Japans economy is desperate and money is leaving because of the 4/1/98 big bang going into higher yielding treasuries and stocks. Japan can't stimulate the economy with lower rates and they can't cut taxes (debt is 1.5GDP)without increasing the national debt and causing rates to rise. They can't increase exports to make up the difference because a lower Yen (150 which I think we'll see by Sept)will rock the other Asian economies (who owe Japan Billions). IMO Japan is where the US was in the 30's except the have a
large amount of savings that have kept them going this long.
It's ironic that the Slickster who passed the largest tax increase in US history is telling Japan to cut their taxes to stimulate their economy. |
