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

To: TobagoJack who wrote (34877)	6/11/2003 9:12:06 AM
From: Ramsey Su	Respond to of 74559

Jay my hero, you are the only one I know who can out post Maurice, out word, cover more subject matters on the same post and stay somewhat on topic. <gggg> The Fed's inflation strategy worries me more than anything else. If it works, we keep the bubble inflated longer and hope that a soft landing via time will ease the pressure. If it does not work, could the US$ be like that of the Latin American currencies? If the lenders ever lose faith in the US currency, how are we going to finance our huge deficits? In the mean time, I am heading back to college, taking some refresher courses on this new economic theory called "jobless recovery". Ramsey

To: TobagoJack who wrote (34877)	6/11/2003 11:32:26 AM
From: Canuck Dave	Read Replies (3) \| Respond to of 74559

Should have bought more CanRoys, Jay. Even with the hit I took on PMT last week, they are doing extremely well. Looks like institutional buying at last. CD

To: TobagoJack who wrote (34877)	6/11/2003 2:27:52 PM
From: Joe S Pack	Read Replies (1) \| Respond to of 74559

Jay, It looks like your Yen loan may end up as a better bet. Japan Weighs Radical Deflation Therapy Benjamin Fulford, 06.09.03, 9:50 AM ET forbes.com TOKYO - Japan is considering taxing all cash and savings in an effort to force its people to spend their money or lose it, according to Shukan Gendai, a leading Japanese newsweekly. The plan, as outlined in the magazine, calls for an annual tax of 3% to 5% on all savings and time deposits in the country. The aim of the move is to force Japanese savers to either buy consumer goods or put their money in stock, bonds or real estate to avoid what in effect would become a steep negative interest rate on their savings. To stop people from simply hoarding cash, the magazine says the move would take place next April when the Japanese government plans to replace current currency with new, hard-to-forge bills. Old cash would be exchanged for new cash after the government takes a 3% to 5% cut and inventories how much people have stashed away. If people fail to change their old bills before that time, they will become worthless pieces of paper. Needless to say, underground money held by gangsters, tax cheats and others would be forced into real estate, bonds or stocks. The only other alternative would be for Japanese savers to take their money overseas, a move which would send a tsunami of yen onto world markets. Since Japan has about $12 trillion in savings, this move, if implemented, could have massive repercussions. It would almost certainly end the 13-year Japanese equity bear market. It could also end deflation in the country. U.S. companies who have invested heavily in Japanese real estate and stocks, or bought Japanese companies, should benefit nicely. These would include Goldman Sachs (nyse: GS - news - people ), Morgan Stanley (nyse: MWD - news - people ), General Electric (nyse: GE - news - people ), Wal-Mart Stores (nyse: WMT - news - people ) and all the various hedge funds--including Ripplewood Holdings, Cerberus and Carlyle--that have big Japan bets.