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To: Hawkmoon who wrote (43656)	10/23/1999 10:25:00 PM
From: long-gone	Respond to of 116756

<<You can't buy Ripple down at the local Mom and Pop with a yen note with Tojo's face on the front. They'll gun ya down. But I can take a US greenback to almost any nation on earth and quite likely have it accepted. Certainly it would be in Russia or S. America. And Deutche Marks are the preferred currency in many parts of Europe (especially in Serbia).>> And it was not many years ago I saw a fortune 500 company doing business out the back dock door for suitcases full of cash, Yen notes. Times change opinions, as to the worth of any currency. In Mexico, Yen are nearly as well regarded in many areas as $.

To: Hawkmoon who wrote (43656)	10/23/1999 11:11:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 116756

Good job. Glad you caught that. It's the essence of asymmetric policy and why Europe can't attempt interest rate parity. Japan's yen also has acceded to a similar status, but it reigns in the sub-region of the New Greater East Asia Co-prosperity Sphere. We have developed a tiered currency structure with rules of subordination. The dollar is at the top of the pyramid. The yen and Euro are at the second tier. All the other currencies have third and fourth tier statuses. The tier is like an order. Usually a problem is too complex to consider it beyond the second order consideration. The lower order countries will take the dollar in a Ripple transaction, but not so in Japan or Europe if you are away from the urban centers. It's a matter of trust. How much trust can you have in the rupiah or in the ruble? In those countries the dollar talks, the local currency is bullshit and it walks. Japan has no current pressing problems. It took them a long damn time to realize that pushing on a string isn't merely a text book exercise in elitism. I disagree that the yen strength makes Japan weak. It only changes the buying priorities and even could end up causing Japan to buy more from us as long as we don't inflate. There's no question that neo-mercantilism must die. The export miracle is finished. It's time for Japan to become indolent like the rest of us! They are changing and yen strength underwrites that, but there is no bogey in yen strength per se. Don't believe the stories of high unemployment and hard times in Japan. I admit their high is high but how high is that? Almost as high as our low is low (4%). The bogey existed as long as BOJ was fearful to implement the right policy. The only conceivable threat to them outside the usual calamities like nuked Arabian oil fields is that they get addicted to fiat currency and generate monetary inflation downstream. Consider how hard it was to get them onto the drug and then consider how hard it can be to get off. By then the costly and hard-won experience of the past is lost. Can you see it? Everyone in the world is practicing beggar-thy-neighbor fiat currency policy and it works! For awhile. Gold starts accelerating in its uptrend. Yeah. Gimme that yaller gold.