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To: Abner Hosmer who wrote (66099)	3/19/2001 12:00:20 AM
From: ahhaha	Read Replies (2) \| Respond to of 116756

Not me. I said they should create currency. Lowering interest rates won't have any effect in a supply side economy unless nominal demand is boosted. Currency component of M2 is shrinking and has been for years. Create currency and rates rise naturally which would cause the yen to firm against the dollar. Currency can't be easily spent abroad so it goes to stimulating domestic demand. The BOJ is dominated by school of demand management thinking which asserts that interest rates are always and strictly inversely proportional to money supply. Not in a supply oriented cash economy, only in a demand oriented debt economy. Japan needs to raise rates. They can't do that directly and they don't need to do it. An increase in currency would do it for them. And yes, the inverse is implied. The FED needs to shrink our roaring money supply growth by staying out of money market and allowing rates to freely float. They wouldn't rise much and they may fall. By pursuing the current policy they guarantee disaster. What is current policy? Targeting interest rates at some irrelevant level while Fisher and his NY Fed manipulators pump in plenty with coupon passes and with a fattened RP free float which leverages M2 off the permanent injections.

To: Abner Hosmer who wrote (66099)	3/19/2001 12:10:57 AM
From: IngotWeTrust	Respond to of 116756

Tom, that is SO true. When things get tough here in America, the first words out of fund managers' mouths is: "Ya'll diversify overseas, now, ya'hear? Why??? B/C your money will grow faster, work harder, return more baby dollars if you only put it offshore." That same "tattoo"--is happening now, it happened in '98,and in... and in... and in... ad nauseum. And you know what the funniest thing is? Ole CNBC's "chief commentator, fat Bill Seidman, has been a high-dollar US consultant, INVITED BY JAPANESE BRASS POLITICOS to help them solve their financial and banking problems for over 10 years I believe I heard him brag on one of his "Seidman Sez Segs"... One of the first things he had to do was to help them figure out a way to tank their banks and not tank their economy. Guess he isn't too good of a tutor, eh? Ever since I heard ole' wild Bill the Seedman say that, I've wondered if he was a "double agent"<g> gold_tutor

To: Abner Hosmer who wrote (66099)	3/19/2001 9:16:10 AM
From: russwinter	Read Replies (2) \| Respond to of 116756

At this stage it's not a question of investment return, it is institutional capital requirements and solvency set by BIS. The Nikkei has never been at 12,000 before when they marked to market. You can't put bank capital requirements in just anything,. There are very conservative standards (gold?). Of course the trillion in postal savings is different. If the Japanese don't come up with decent investment instruments, their citizens may start stampeding abroad.