Zeev,
a lukewarm announcement might set up the rebound in Asia and our
own summer rally.
As one who does not even hope to understand the world economic situation, I still wonder about the big picture. I ask why Japan has not yet lowered taxes to stimulate their economy? Are they afraid of the political fallout from loss of government programs? Would they rather go down with the sinking ship? Are these not the same people who gave us the terms "hara-kiri" and "kamikaze"? (This is not a racial slur, only a comment on what we in the West tend to think of as the Asian tolerance for pain as opposed to our own relative weakness.)
Are we not the ones who got Japan in this mess in the first place by strong-arming them into lowering their interest rates back in the 80s, creating a bubble economy in stocks and real estate? Are we now to strong arm them again into doing something about the mess we in effect created? Will they submit to this?
How will managed currencies fare in the future, since we have no "real money", e.g., gold, as a standard? Can disparate countries ever agree on whose currency should be at what level? And isn't it all a "con game" anyway, since all the countries print money with no backing? If any thing happens to break the CONfidence in the con game, it's all over, it seems to me.
Just some musings from someone who has a lot of questions but no answers. Where is that watermelon truck? <G>
Jack |
