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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (4011)	6/5/2001 5:14:29 PM
From: Hawkmoon	Respond to of 33421

Printing money... They can't lower interest rates any lower, so they will have to flood the system with liquidity and just make a fiat statement that the currency is now worth a certain percentage less than it was the day before. There are other examples such as the devaluation of the peso and real. It generally results in short-term capital flight, but since there are more yen out there, and the value of those yen are worth maybe 30-50% less than they were before, thus the national debt is worth that much less since it's being paid back with cheaper currency. Japan is caught in a liquidity trap exacerbated by a aging demographic trend. It's quite similar to what the US endured in the 1930's, and that required a devaluation of the USD and the confiscation of gold. Hawk