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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (8137)	8/20/2007 2:13:51 AM
From: Hawkmoon	Respond to of 33421

``Fukui still wants to show that Japan needs to normalize rates,'' He's a fool.. IMO, the only way out of a liquidity trap is to increase demand, or induce inflation (which forces people to spend out of fear of depreciating value of their deposits). And since Japan's demographics do not suggest demand increase via population, the only means possible is via investment in innovative infrastructure (not just new airports and city parks).. Simply put, they have to find a means to increase GDP domestically, probably through deficit spending that focuses on new and innovative technologies with global demand, and then commercialize that in the private sector. Furthermore, they can quash asset speculation by increasing the difficulties involved in buying real estate above certain valuations (much as we do by preventing Fannie Mae from buying Jumbo Mortgage loans). Just my .02 worth. Hawk