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


To: orkrious who wrote (7137)2/6/2004 3:03:18 PM
From: ild  Respond to of 110194
 
Date: Fri Feb 06 2004 14:16
trotsky (AU_NB@Japan) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
no, imo the BoJ is funding it. but it's true that they're at least in part doing it because Japan is a US vassal. the problem is that the Asian mercantilists are contributing to the formation of various bubbles - which in turn keep undermining the global economy's structural integrity. imo it will end in an utter catastrophe, and the longer the status quo is kept alive, the worse it will be.
Apollo: well, you have a point, but their banking system is insolvent anyway. so they're just pretending a little while longer. still, the more worthless IOUs they acquire in exchange for real goods, the more tenuous and dangerous their position becomes over time.



To: orkrious who wrote (7137)2/6/2004 3:25:33 PM
From: Haim R. Branisteanu  Respond to of 110194
 
very "inaccurate thinking" - BOJ buys paper for which Japan pays with paper - after all Japan can print as many Yen's as they want to buy US treasuries of agency debt.

Woudl be very different if they were buying with gold for example ---- only then Trotsky would be right --- but paper against paper who cares ---- the workers making the widgets are paid also with paper