Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: EL KABONG!!! who wrote (44727)	1/15/2004 7:29:20 AM
From: Seeker of Truth	Respond to of 74559

Kerry, I was sure that you didn't write that. It was interesting propaganda. Trust is very important. I remember in China back in the days when the Kuomintang ruled there. The people didn't trust the currency, justifiably. The more of those government bills they printed the less did the people trust it. the more eager they were to trade it for grain, silver, gold etc. The more they did so the faster the Kuomintang government had to print the money. One weekend I remember prices tripled. Nowadays in Japan we have the opposite situation. Trust is amazing. The population is docile and even though the government is printing wads of new bonds, they are assumed to be money and money is assumed to have more or less permanent value. The less the frugal Japanese people spend, the bolder becomes the government in their drive to get into debt buying dollars. Opening the gates to a certain amount of low priced Chinese products such as vegetables etc. has also helped the confidence in the currency. So there has been zero inflation. In the US we have an intermediate situation. Plenty of people trust the dollar and plenty of people don't. So propaganda is very important. Gold, Platinum etc. holders need not fear.