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To: Rarebird who wrote (69275)5/16/2001 1:06:42 PM
From: Box-By-The-Riviera™  Respond to of 116764
 
you are in rare form this week!

two great posts



To: Rarebird who wrote (69275)5/16/2001 2:21:25 PM
From: russwinter  Read Replies (1) | Respond to of 116764
 
<when the Bank of Japan cannot inject liquidity into the Japanese system through the banks, it has only two stark alternatives left. Either it can monetize Japanese government debt paper, or it can bite the bullet and begin to repatriate capital held overseas - notably in the form of U.S. Treasury debt paper.>

If this is actually occurring (and I've been looking for it: siliconinvestor.com we have the landmark financial event of the last quarter century. Major stuff. Anybody spot any collaborating articles, etc. on this?



To: Rarebird who wrote (69275)5/16/2001 5:24:33 PM
From: lorne  Respond to of 116764
 
This may be of interest to you and russwinter.
Business Inside / Blame BOJ, not economic structure
" So what determines actual growth? In other words, just why has Japan been in a decade-long recession? Simple. Growth is the result of net new economic transactions. For each transaction, purchasing power--money--is needed. If we want net new transactions, we need net new money in the economy. And that can only be created by the banks and the central bank. As banks have been burdened by bad debts, they have stopped lending. So money creation has slowed sharply, and demand has slumped. Hence, for 10 years, Japan's economy has been artificially held back, condemned to low growth by a lack of money creation. "
" Stimulatory fiscal policy cannot help, if it is not backed by money printing. "
Full story >>> scroll down to economy
yomiuri.co.jp