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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 385.42-0.3%Dec 8 4:00 PM EST

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To: TobagoJack who wrote (7507)7/9/2006 7:15:33 AM
From: elmatador  Read Replies (1) of 218270
 
Reading Richebacher with a slant: More money is available, and with less possibilities for this money to be put to productive use in rich countries, this money, naturally flows to where it is needed, i.e., to Brazil.

As Japan puts more money to businesses to make use of it, Toyota/Honda, takes this money and finances Corollas and Hondas for foreign customers,thus giving a hard time to F and GM.

As more credit is created for foreign to buy Japanese products Japan economy becomes a bank with some industry on the side.

Richebacher goes on to say: "Where there are no borrowers, no amount of liquidity injection will increase the money supply and reflate the economy"

That's totally and absolutely wrong. There are billions of borrowers eager to take money and employ it productively today.
I'm not saying it should be like lending petrodollars to state-owned enterprises a la 70's. I'm saying buying companies in those countries. Buying utilities, roads, airports and harbors.
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