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To: David Zgodzinski who wrote (184090)	7/28/2002 3:39:59 PM
From: SouthFloridaGuy	Respond to of 436258

Refererence this post: Message 17804872 The United States is not Japan and that is the problem. Deflation occurs by non-willingness of buyers to buy and lenders to lend. Let's not act like the Japanese are not printing money like crazy - their interest rates are at 0% - that by definition means that credit is free. The Japanese can do this because they don't owe anybody sh!t. The Japanese were way more prepared for a burst bubble than we are. They had/have high savings rates and they were able to create the facade of prosperity by lending infite amounts of credit to the U.S. in exchange for a place to park their exports and keep their workers working -simple MacroEcon 101: excess savings goes to worldwide investment opportunities in exchange for Net Exports. This game is over and watch the Nikkei go to 4,000. The US is very prone to worldwide impressions given its huge trade deficit. I think the best definition of deflation in a modern day economy is a non-functioning credit market. The ENDGAME is lowering prices. And that's exactly what we're headed for - the stock action of the banks this week confirmed it...and this before a blow-up. Start buying gold all the way down to wherever it goes down to (Dollar cost average). It will make you very rich - just not today.