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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (875)	6/28/2002 5:00:51 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

two big painful similarities between USA and Japan 1. the USA is now caught in a liquidity trap it may not be as brutal as Japan's, but it is serious lower 1.75% shorterm rates are poisoning the currency just like it poisoned the Jyen horrendous federal deficits follow such traps and the US fed debts will surely mount in May it was announced as $60 billion or so lenders are not finding willing borrowers so readily the borrowed money invested offers poor potential returns these low shorterm rates are handcuffing and stifling american businesses they just dont know it yet wait until interest rates rise, and watch the untold damage 2. US banks are nowhere near as healthy as they appear let's see how many regionals fall with a real estate correction let's see if FannyMae can survive such a correction let's see how many moneycenters fall with the gold revenge short squeeze taking out and shooting several Gold Cartel derivative desks let's see how many credit card banks can survive the upcoming liquidation of households via bankruptcy if we bail out JPMorgan and one other large bank in the next 18 months, then Roach's assessment might be proved wrong we have perceived dissimilarities to Japan so far BUT WE HAVE NOT COMPLETED THE LIQUIDATION PROCESS YET get back to this issue in two years they had a 12-yr headstart, which masks comparisons I suspect the USGovt will have monetized, nationalized, and institutionalized much of the banking system by then the revenge of gold is total and powerful 30 years of monetary crime creates a lot of bullshit to flush an inflationary recession awaits us by next year the stock market is the best predictive tool in the world and recent currency action serves a confirmation of recession A RISING TIDE LIFTS ALL BOATS BUT A DEPARTING TIDE EXPOSES ALL THIEVES, CORRUPTION, HOLLOW VESSELS / JW