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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: marynell who wrote (390)	10/30/2001 10:47:22 AM
From: I_C_Deadpeople	Respond to of 39344

I could be wrong here and I am going from memory from what I have read...historically, depressions have been deflationary for net creditor nations (Japan in 1990, US in 1930), but inflationary for net debtor nations. I think the theory goes that all nations attempt to inflate their way out of economic trouble. So if you are a net debtor nation, this causes pressure on your currency and thus more money is printed to pay for your debts and thus the spiral.

To: marynell who wrote (390)	10/30/2001 12:06:19 PM
From: Claude Cormier	Respond to of 39344

Marynell, I don't think that the Japanese money stock grew like the US money stock despite them having zero rates. I agree that the expansion has been a credit expansion. But we are now moving into a new phase: deficit spending. Money stock will continue to expand.. don't worry. The US government may not force people and corporation to borrow. In fact they wont because they are already up to their limit. But the governement can spend and it will. Big time. This is certainly the most important debate going on in monetary circles. We will have the answer in the years ahead.