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

To: Knighty Tin who wrote (76298)	2/20/2000 4:59:00 PM
From: valueminded	Read Replies (2) \| Respond to of 132070

Mike: The issue with the printing press in Japan is government spending, the individuals save most everything. While you might make this trade work, I think it would be luck more than fundamentals. Japan still has a huge Debt problem to deal with. (Not that the US doesnt either) The problem (at least if you read Deflation by Shilling) is that when the debt load is mostly by government, they have a natural tendancy to inflate the debt away, if the debt is private, oh well fend for yourself. I would think that neither the YEN or the $ is going to fare well here. I like the Euro best, but not sure of the productivity numbers to be able to make a strong bet one way or another. Guess I have to stick with gold.

To: Knighty Tin who wrote (76298)	2/21/2000 11:07:00 AM
From: Mark Adams	Respond to of 132070

Mike, I think the cultural difference may have been reality a decade or two ago, but now would argue the world is more interdependent. I can't see how economic policies in Japan can't have some impact at the margin in the US. One mechanism that easy money in Japan may be reflected elsewhere is the Yen Carry trade. This would allow other cultures, with more of a consumption oriented style to benefit from Japans easy rates. Another may be global companies, that secure debt in Yen and make investments in Pounds (say, Ireland). Just a thought