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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Wyätt Gwyön who wrote (54294)2/20/2006 11:22:57 AM
From: el_gaviero  Read Replies (1) of 110194
 
Another good post --- call it Occam’s razor applied to Asian CBs. They do what they do because they want the result they get: i.e., low domestic currency, high dollar, lots of exports.

You say about Japan’s strategy of exporting to the USA that the Japanese haven’t “ended their addiction .... after 40 years.

Why is that?

Are there political reasons why the Japanese don’t change their strategy of mercantilism? Would exporters in Japan lose power if domestic consumption went up while exports went down (or came to represent a smaller proportion of GDP)?

In other words, has an economic strategy somehow gotten frozen into the structure of Japanese institutions, so that a change of strategy would entail changes in the area of politics ---- with new relationships of dominance and subservience, etc etc?
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