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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: el_gaviero who wrote (4395)	1/5/2004 12:36:19 PM
From: Wyätt Gwyön	Respond to of 110194

Japan sterilizes some of its purchases through their Foreign Exchange Special Account (FESA). they also force a lot of purchases onto insurers and the postal savings system, which holds more than $10 trillion worth of citizens' savings. the Japanese bubbles going back to the 70s were used to create yen deposits which could be used to fund forex interventions. with the crash of the stock and real estate markets, the govt has worked hard to foment other bubbles to create more yen. this shows up most blatantly these days in the public works boondoggles which are used to pay off cronies with cush contracts. the proceeds are then rolled into stable savings accts which fund further dollar purchases. the result is that the govt has a credit rating on par with Botswana, but at least they can buy a lot of clownbucks.