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


To: EL KABONG!!! who wrote (30909)4/7/2003 1:25:44 AM
From: TobagoJack  Respond to of 74559
 
Hi KJC, <<Borrow money from a Japanese bank at negative interest rates>> that is what I thought and still think, but the risk is

(a) given Japan controls 40% of world's saving pool and can decide however they decide

(b) if they decide to stop buying USD when the US consumer balance sheet's are tapped out, the Yen could rise, even if it is doomed.

Perhaps a heated up N.Korean situation will keep the Japanese from stopping with capital emigration, but then ...

If the N.Korean situation heats up too much, and the US does not play in accordance with the Japanese playbook, then Japan may seek to dramatically increase military spending, at home, and slow USD accumulation.

There are too many if's in the financial jungle at this time.

Chugs, Jay