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

To: ild who wrote (45175)	11/9/2005 1:11:40 PM
From: ild	Read Replies (1) \| Respond to of 110194

Date: Wed Nov 09 2005 12:53 trotsky (the BoJ and its 'quantitative easing policy') ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved this huge Keynes-inspired erroneous policy must have cost Japan dearly over the past few years. if money and interest rates had been left to the free market, Japan's quandary would have ended long ago. both the fiscal and monetary Keynesianism practiced in Japan have probably added an entire decade of economic misery to the early 90's bust. it stands as ( yet another ) example of the utter bankruptcy of modern economic 'thought'. Keynes' economic model only serves to perpetuate and entrench the welfare/warfare state andskeeps its established political and financial elites fat and happy, while everybody else is handed the short stick. the Japanese fell for it hook line and sinker...whenever they stopped to wonder why massive deficit spending and running the printing press 24/7 had not produced any of the effects predicted by scores of advisors, those advisors assured them that they simply had not spent enough money on bridges to nowhere. surely if they intensified the failed tactic it would yield results. well, there was a result: more failure. Date: Wed Nov 09 2005 12:33 trotsky (JD@10:53) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved i'm not sure what this was about - currency intervention? if so, the short and sweet of it is that while many governments try to influence the currency markets via inerventions, there is zero statistical proof that they have any effect whatsoever. in fact, it could be argued that such interventions often have the opposite effect of that desired, as market participants in the vast currency markets interpret them as a sign of weakness and are happy to provide the other side of the trade. recent history is replete with examples of the complete failure of currency interventions. e.g. when the Pound threatened to fall out of the ERM in '92, Soros famously made a billion after the Bank of England had pulverized about 70% of its forex reserves in the misguided attempt to shore up Sterling. likewise, as long as the BoJ intervened to keep the Yen DOWN, the Yen just kept going UP. ever since it STOPPED its interventions, the Yen has been going down. this is a fairly typical case of intervention producing the opposite effect of its aims. in short, all the whining about 'currency manipulation' is a waste of time. it's true that it being done, but the market is too big to allow it to succeed ( the very same holds true for gold by the way. e.g. the WAG signatories sell 500 tons per year, but London alone trades about 600 - 900 tons EVERY DAY. in short, the central bank gold selling can only have an effect when gold demand is weak anyway, and gold is in a bear market. in bull markets it merely eggs the market on, by providing additional liquidity which attracts bigger players ) . Date: Wed Nov 09 2005 10:48 trotsky (proof is here that faith) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved does not preclude a worldview that accepts scientific evidence. we should probably say 'thank God' for this. you see, you have a choice. you can be religious, but don't HAVE to be a complete wingnut at the same time. while fundamentalist US evangelicals do their utmost to transform the minds of children into a sort of medieval wasteland filled with superstitions , the Catholic Church, which has a lot to atone for in terms of its historical repression of scientific enquiry, has come out in defense of science: "THE Vatican has issued a stout defence of Charles Darwin, voicing strong criticism of Christian fundamentalists who reject his theory of evolution and interpret the biblical account of creation literally." news.com.au