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To: pater tenebrarum who wrote (128338)	10/9/2001 2:04:35 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 436258

Japan is not the US ........ remember carry trades ??? US culture is to spend .......... Japan culture is to save ....... both countries are capitalistic and democratic ............ social order and culture matters more than monetary policy. BWDIK Haim

To: pater tenebrarum who wrote (128338)	10/9/2001 2:09:24 PM
From: Mark Adams	Read Replies (2) \| Respond to of 436258

In addition to what Haim posted, Japan is experiencing active deflation, thus real interest rates are not zero despite the nominal rate.

To: pater tenebrarum who wrote (128338)	10/10/2001 9:11:31 AM
From: Don Lloyd	Read Replies (2) \| Respond to of 436258

hb - mises.org "...According to Mises: As the operation of the market tends to determine the final state of money’s purchasing power at a height at which the supply of and the demand for money coincide, there can never be an excess or deficiency of money. Each individual and all individuals together always enjoy fully the advantages which they can derive from indirect exchange and the use of money, no matter whether the total quantity of money is great, or small. . . . the services which money renders can be neither improved nor repaired by changing the supply of money. . . . The quantity of money available in the whole economy is always sufficient to secure for everybody all that money does and can do.[4]..." "...To protect their purchasing power, holders of the over-issued certificates naturally attempt to convert them back to gold. If all of them were to demand gold back at the same time, this would bankrupt the bank. In a free market then, the threat of bankruptcy would restrain banks from issuing paper certificates unbacked by gold. On this Mises wrote, People often refer to the dictum of an anonymous American quoted by Tooke: "Free trade in banking is free trade in swindling." However, freedom in the issuance of banknotes would have narrowed down the use of banknotes considerably if it had not entirely suppressed it. It was this idea which Cernuschi advanced in the hearings of the French Banking Inquiry on October 24, 1865: "I believe that what is called freedom of banking would result in a total suppression of banknotes in France. I want to give everybody the right to issue banknotes so that nobody should take any banknotes any longer."[5]..." Regards, Don