Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Joan Osland Graffius who wrote (11508)	12/13/1997 6:20:00 PM
From: Lazarus_Long	Read Replies (1) of 94695

<< people are taking yen out of the system and stuffing it in their mattress. >> At 1% a day??!!?? That's a lot of mattress stuffing. Actually, since most money is in a form other than currency (checks, credit, deposits, etc.), that rate of withdrawal of currency from circulation cannot be kept up very long. << Their debt is pegged to the yen so it does not matter. >> I don't understand this. If a monetary authority increases the money supply significantly more rapidly than its economy grows, the result is (usually) inflation of its currency.

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