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.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (43425)	10/20/1999 9:37:00 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 116762

If they resort to continued monetary means to preserve l'ancienne regime, they will be inviting serious inflation problems. The problem will appear in the form of stagflation. ahhaha.. You make an excellent point. I'm not sure if you read yesterday's Financial Times (London), but there was an article in it where it was reported that BOJ was trying to figure out a way to institute a target goal of 1-3% inflation in the Japanese economy in order to guard against deflation. Now how will they accomplish this? By printing Yen. But will it be enough? I can't see how. The yen must be weakened, or the threat of weakening must exist, in order to convince the Japanese people to spend or consume, knowing that if they don't spend it, it will lose its value sitting in their bank accounts. Call it tough love, but that, I believe, is the only way to shock their economy to a sufficient extent that they come out of their lethargy. (and of course it would be great for easing inflation fears here) The Japanese economy just will not prosper properly if they continue to take measly incremental steps as they have been doing over the past decade. Industry and manufacturing will travel to neighboring countries where goods can be produced cheaper, leaving Japan a nation of semi-wealthy retirees with 12 trillion yen in savings, but with a bunch of unemployed youngsters having to compete with South Korea and Thailand for manufacturing work. Btw, look for the Yen to weaken by the end of the year. It was announced yesterday that the Japanese Govt will be forced to issue $47 Billion (Y5,000Bn) BY THE END OF THE YEAR (yeah.. 60 days) in order to fund their plan for public spending (stimulus package). And to boot they are trying to hide this bond offering amongst shorter term bonds in order to hide this tactic from outside investors who normally invest in 10-year bonds. Pretty slick. So what this tells me is that something is rotten in Tokyo and suddenly these guys need to add $50 Billion in public debt to their already tremendous budgetary deficit. It could be that we're set to see a few more Nissan-style restructurings where large numbers of people are suddenly handed pink slips and the govt is worried about how to keep them employed. Regards, Ron