Ron, all we have to do is ask Ron Reece to please explain to us who
think gold and paper money has a strong direct connection, to explain
to us that its not only ok and good, but correct for Japan to add ink to
$40,000 of paper and call it paper money worth $400,000,000.
good golly gee that a 1 to 10,000 return to give a 1,000,000% turn over
But its the way money is created and transfered into the system to
represent or balance new "goods", Ron Reece has told us.
I think I'am beginning to understand Ron Reece's thinking....
1. Japan prints currency to equal 400 million USA dollars.
2. Japan then exchanges this Japanese currency for USA Bonds.
3. The USA government now has this US $400,000,000.
4. USA Fed gives this US $400,000,000 to USA banks.
5. USA banks loan this US $400,000,000 to regular folks.
6. Regular folks now buy Japanese goods with this money.
7. Japan then gets the money back.
8. Japan then sells the USA bonds and gets its money back.
lets see, a Honda Accord cost average US $20,000
Japan had 20,000 Accords already made, unsolded
the American public borrowed US $400,000,000 to buy the cars
the American public now has 20,000 new Accords
Japan now does not have 20,000 Accords
Japan now has US $400,000,000 + US $400,000,000
looks like Japan now has real USA dollars 400,000,000 it didn't have
as if it came from where ?
wow
Ron [Everest], my 15 minute Edit window is closing
i have to check this and add another post if i see wacko stuff
doug
Doug, I think the Japanese article indicates INFLATION big time, seems odd though if the article is credible that the Japanese can exchange printing press for US $. Is the US $ worth so much more, is that the implication? Sounds good for gold to me!
Best regards, |
