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

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To: shades who wrote (55941)3/15/2006 9:15:41 AM
From: russwinter  Read Replies (3) of 110194
 
Don't agree, I don't think Japan has a problem with "population pacification". They have an older population, and like China, following just an export to US and elsewhere for Old Maid Cards model is problematic. I've long argued that a stronger currency helps these Asian countries better afford input goods and resources that have become expensive. A strong currency is also a defacto increase (more global purchasing power) in the wealth holdings in Yen or Yuan of these folks, and would actually stimulate, not depress their domestic economies. Increasing interest rates to at least normal rates serves the same purpose. These countries are long past the developing export model stage, time for them to move on.

More importantly, think that's exactly the policy Japan is following, rates up again:
bloomberg.com

Another 0.8 trillion Yen removed from bank reserves, and 1.4 trillion sold (in effect a reverse coupon pass).
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