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


To: philv who wrote (6147)1/25/2004 3:31:31 PM
From: orkrious  Read Replies (3) | Respond to of 110194
 
this article should stimulate some discussion here. the author argues that the current japan/us currency relationship can be sustained indefinitely as long as the japanese are stupid enough to keep buying dollars.

HOW THE DOLLAR AND TRADE DEFICIT CRISIS
WOULD HAVE EMERGED UNDER GOLD STANDARD

gold-eagle.com



To: philv who wrote (6147)1/25/2004 6:45:48 PM
From: mishedlo  Respond to of 110194
 
That is the theory anyway. I don't know how you can cut the money supply without a resultant increase in rates.

Why not?
Cut the money supply and keep the FF rate the same.
What could be simpler.
There is money to lend at cheap rates but only the best customers get it.
Banks will be more selective about who thay loan that money to instead of sloshing it around at everyone. Reign in FNM somehow and tell me housing doesn't cool.

It's neither here nor there because we are throwing down payments at people now to keep the housing goose alive.

M