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


To: NOW who wrote (11477)5/26/2003 11:48:52 PM
From: Elizabeth Andrews  Read Replies (1) | Respond to of 39344
 
The Bank of Japan buys US treasuries with yen that they print causing new supply of yen and lowering the value of yen relative to dollars. The process is inflationary for dollars and yen as the issuance of US Treasuries is inflationary, but the Japanese have to create yen faster than the USA creates equivalent dollars to cause the yen to depreciate faster than the dollar and keep the export advantage.