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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: NOW who wrote (2567)3/19/2004 8:25:08 PM
From: CalculatedRisk  Read Replies (3) of 116555
 
If I am correct, it will be the reverse ... they will not stop buying until Japan sees inflationary pressures.

The following is an interesting article. The author believes that Japan is "going into debt" to buy US treasuries!. There is no evidence of this, and if I am correct, this is not true. Japan is using unsterilized purchases of US dollars (followed by buying of US treasuries) to inflate their economy:
yomiuri.co.jp

If a country is in deflation, this seems like FREE money. Of course it has a "beggar-thy-neighbor" aspect too. And unfortunately, we are the neighbor. I think this is why Greenspan is complaining.

Caveat: I am way out of my area of expertise here.
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