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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Ilaine who wrote (4674)6/10/2001 6:45:02 PM
From: TobagoJack  Respond to of 74559
 
Hi CB, <<Furthermore, Gilmore said, "the United States is sensitive to the problems Japan faces in implementing painful structural adjustment" in its economy. "Sanctioning dollar weakness means yen strength. The last thing Japan need in coming months is a rising yen."<<

The dance of the debtor and creditor, on the back of the single bull (US equity market), charging into the midst of the bears (all the bad news).

The strength of the USD may get crazier still, as in a mania (there, I said it), and all should be ready to buy that island villa in some place warm.

<<Strong dollar = low inflation = low CPI = low COLA for Social Security, federal government workers, federal government retirees = lower taxes?>>

continued ...

= further cheap Japanese financing = strong dollar = low inflation = low CPI = high stock price = high tax revenue (as opposed to rate) = happiness

and if not ... then the virtuous circle becomes a straigth line to debtor's prison.

Chugs, Jay