Tom D,
1. I got my DEPO today. Checked with my broker. Went to $14.50 to insure that it went through.
2. I read the article, and I have been hearing the story for a long time. The problems they point to in Japan do exist, as do the problems that many point out about the US trade defecit, budget defecit, etc.
I tend to think that Japan is a very psychologically stable country, and they are not prone to panic. So I am not too worried about a big crash. But if Japan starts to crash, what will they have to do to get funds to support themselves? They will sell their T-bills, their overseas real estate, etc. Japan can go to the U.S. and ask them to pay back all of the money they loaned to the U.S. But where will the U.S. go to get their funds? The U.S. is the largest debtor nation, and they will probably not be able to get any funds (at least at reasonable rates).
There has been talk about this for 10 years or so, both in the U.S. and Japan. Whether or not it will happen, I have no idea. But it sure is a good advertisement for gold.
Do you have any ideas about ways to protect funds in case of emergency? T-bills, and other U.S. currency based vehicles are very risky in the event of the above scenario.
Good luck,
THC |
