Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Lymond who wrote (68006)	9/21/1999 11:15:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

John, Credit creation is a necessity. However, when credit creation runs far beyond the savings rate, you have an unbalanced, dangerous, credit-weighted economy. The Japanese miracle was first a savings miracle. The US economic miracle was also a savings miracle until the last 20 years. Now, every year the savings rate declines and we are creating credit off the savings of other countries. There is nothing wrong with siphoning in the savings of other countries, but it is like having a strategic material in foreign hands. You have to awfully careful that those hands will always do what is most advantageous to us and not what benefits them the most, if those two things diverge. One of the reasons for the downturn today was that the Bank of Japan basically said to hell with financing America's debt binge. True, they don't speak for everyone or even the majority in Japan, but they are a major factor.