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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (169)	2/18/2004 5:44:25 AM
From: Chispas	Read Replies (2) \| Respond to of 116555

From Japan - "The challenges facing the U.S. economy are at least twofold. One is that the U.S. economy has already used up an even larger dose of monetary and fiscal medicine over the past four years than the Japanese economy did during the first seven years of the 1990s. Another is that the U.S. economy cannot finance its economic expansion with its own internal resources, as has been exemplified by the ballooning current account deficit. This is unlike the Japanese economy, which retained a sizable current account surplus even in 1996, the seventh year after the bubble burst. First of all, it's doubtful whether the American public is prepared to incur indefinitely larger and larger budget deficits to finance a further expansion of the U.S. economy in the current form. Tax cuts have benefited the wealthy, but the expansion of jobs has been almost nonexistent. Secondly, the Fed is quite unlikely to raise interest rates despite the ballooning current account deficit and a falling dollar if its primary focus remains the continued growth of the U.S. economy. All the contradictions arising from U.S. monetary and fiscal policy appear to be masked temporarily by massive interventions to support the dollar, primarily by the Japanese central bank, and to a lesser extent by the other Asian central banks. Such operations in the currency market have amounted to larger and larger purchases of the U.S. deficit bonds. The problems arising from such ad hoc measures are multiple...." Complete article : asahi.com

To: Chispas who wrote (169)	2/18/2004 10:12:57 AM
From: yard_man	Respond to of 116555

>>We almost never have anyone who can pay cash, so we just goofed."<< what's wrong with you -- don't you know inflation is rampant and you can pay back in cheaper dollars <vbg> I borrowed money to buy a truck 3 years ago at a Nissan dealership -- we agreed on a price and when the loan fellow wrote the loan paperwork, the loan amount was $600 dollars higher than it should have been -- he corrected it and I still bought the truck. I should have walked and not just for that reason. It was paid for in a year and a half, but I think it is the last time I'll get a new vehicle or take a loan for a vehicle ... I just don't like borrowing money at all.