Joan, if I may
I would like to reply to your post.
"Yes, I don't know what goes on in the minds of people. I think that the Japanese people have around 5 trillion yen in cash as savings, someone could correct me if this number is incorrect."
"Cash has been king in Japan with deflation for the last ten or more years and holding this asset class has increased the purchasing power of it's citizens."
The Japanese bank system is insolvent. They have huge amounts of debt on the books that will never be repaid. Their assets, with the help of the government, are grossly overstated. The government often helps banks by raising the valve of their assets ,by buying stock, in the market. Yes the government can buy stock, helping to drive the market up at an opportune time. Like NOW.!! Merrill Lynch seems to be helping in this by calling Japan a buy. I believe that by March 28 the banks must revalue their stock holdings to reflect market value.
Few Americans have been in a society when a currency is greatly devalued or collapses. We take stability for granted. The Japanese people, like most through out the world, know the price of not taking some precautions.
One only has to look at Argentina. I've been in a few countries when their currency collapsed.
Why are the Japanese buying gold, than say dollars? The American dollars is counterfeited in large numbers overseas. In Thailand they have some of the worlds greatest printers and counterfeiters. Yes even the new dollar is counterfeited ,so few but the U.S S. Service can tell. They are that good. While gold is easy to test
Anything can be use as money as long as it is accepted as a store of value.The counterfeits are so good, and if they stay in Asia, it is an acceptable money.
Having spent some time in Asia, I have come to greatly respect Asian business sense, and their ability to survive..
I am greatly concerned about this behavior of the Japanese people and hope this is NOT the writing on the wall.
My Views right or wrong |
