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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: ild who wrote (2226)6/9/2003 3:11:16 PM
From: Perspective  Read Replies (2) of 4907
 
You're not wrong. However, every deflationary impetus will be met by an overwhelming inflationary response from the Fed. They will be able to destroy the currency where Japan has failed because (and I never thought I'd say this) we're not Japan <gulp>. With our immense dependence on imported goods, current account deficit, and government deficits, we can succeed in collapsing our currency and creating inflation where Japan has not. I believe Japan has failed to staunch deflation precisely because they are a nation of savers, and not heavily dependent upon imports.

I must point out, succeeding at destroying your currency amounts to succeeding at a game of losing, but it is "success" nonetheless.

BC
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