Hutch... would you care to comment on my Japan views?
Sure, Japan is still sucking the recession exhaust! Actually I find you a refreshing personality on the GPM who takes the time to study the material he comments on. You don't brush of conversation, and make quick quippy remarks. My only problem with you is that FAR to many times I'm in agreement. Although we often disagree on the small elements of some economics, gold & currencies, we are for the vast amount correlated.
Finally, money supply is dictated primarily by the demand for US currency. If you stifle supply by restricting money supply, we will increase the strength of that currency beyond the level that is economically healthy. Thus, to maintain price stability within the currency, supply must increase to meet demand.
Ahh I love that comment. And find it to be the most accurate portrayal of WHY M2 has in the past been pumped into the system. To attempt to stop the US dollar over appreciation during time of semi-economical strife. Where would gold & inflation be had Greenspan {the Spurn of this thread} sat back and allowed the US dollar to reach 160 Yen and 82 Euro.
Unfortunately for competing currencies, the high rates of return on US dollars makes it necessary for them to raise their own rates in order to compete, despite the fact that their economies are far less vibrant and they run the risk of going into recession themselves.
AKA the Euro. Excellent diagnosis on your part. So yet we can expect that the Euro, and Yen may still not be out of the downdraft created in 98. I think I know why you and I hang out here for so long when we seldom speculate in gold stocks. We know a time is coming, and we want to time the exact low so that we can get in. And when we do... you and I will be the loudest cheerleader around.
Best Regards
Hutch |
