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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3879)	12/18/2003 10:18:42 PM
From: Wyätt Gwyön	Respond to of 4905

ultimately this is a tax on Japanese savers. they are transferring their savings to us. literally, they might as well drop Yen from helicopters in America! effectively they have been doing this by buying GSE paper, which through cash-out refis gives free money to lazy Americans. the amazing thing is that they haven't been able to raise the USD/JPY cross despite this. the Japanese MOF is truly insane.

To: mishedlo who wrote (3879)	12/19/2003 12:46:53 AM
From: LLCF	Read Replies (1) \| Respond to of 4905

LOL... "keep selling yen, no matter what is needed".... and the Fed will "keep selling dollars, no matter what is needed"! This is too funny... what a joke, anyone still wondering if they should buy gold? Buying more DROOY daily btw, getting back in... and looking for more .10 Canadian miners to buy hundreds of thousands of shares of... since all the other ones are .50 now. I'll say it again... even if Prechter is right short run, this is the greatest trade left in our lifetime.... and the easiest. This doesn't mean that S&P pooots aren't a good buy first however... nibbled more today. Now, back to the Cows. DAK

To: mishedlo who wrote (3879)	12/19/2003 11:31:34 AM
From: orkrious	Read Replies (1) \| Respond to of 4905

Date: Fri Dec 19 2003 10:51 trotsky (ork@'will the BoJ manage to keep the dollar's) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved decline orderly'. in theory, yes. after all, there is NO LIMIT to the amount of Yen the BoJ can print. as a matter of fact, its printing press has been doing overtime for quite a long period now. however, there are many reasons to suspect that in the end, they will simply be overwhelmed by the developing crisis. at that point, unexpected things might happen. for instance, there is no immutable law of nature that says that Asia's central banks must continue throwing good money after bad in an attempt to keep their new age mercantilism alive. of course, Japan is a VASSAL of the US treasury, first and foremost, and so far, is probably doing as it's told. but the inescable fact is that the central banks can not con the market forever. Japan's incessant printing of Yen in order to buy depreciating dollars is not an isolated event - it has far-reaching consequences for its economy, and indeed other economies in Asia. when the consequences of these actions finally hit home , there may be a change in political leadership. the new guys may be less pliant - and less inclined to add to the IOU mountain. the huge dollar overhang in Japan's hands is in fact a threat to the dollar longer term - simply because one day, someone will come and want to get rid of it. it is one of those very thin threads upon which the entire dollar standard/fiat system hangs. when it snaps, gold would probably trade at stratospheric levels...it's less obvious what stock markets would do. it's possible that they will gain nominally, but not in real terms. historically, stock markets have often risen in response to monetary crises, due to the fact that stocks inter alia represent a claim on productive assets.