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

To: suanny who wrote (87709)	10/4/2008 8:00:54 PM
From: koan	Read Replies (1) \| Respond to of 116555

Yeah, I can see that and he may be right. I see that. Here is what I am wondering: Regardiing the Japanese deflationary times, it was my understanding the Yakuza had been gambling on Toyko real estate. When the real estate market went south the banks were afraid to mess with them. The second part of course, is how baffled everyone was trying to kick start their economy again even with no interst rate. Dismal Scientist is an eocnomist and I believe he said FDR was slow to take Keynes advice. Japan never did really figure out what to do. Even near zero interest rates didn't help. Of course Japan has a falling population. Point being, they apparently didn't really know what to do, or understood what the proper equation was. So here we are now in the US. The only thing I feel for sure is that whatever we are seeing and thinking and doing is probably a distortion of a much bigger reality about to unfold. The mental image I have, is of a contracting and collapsing economy causing a huge rise in deficits, crumbling economic infrastructure and attendent increasing credit problems, fall in the dollar, so more deficits, as we pay more for energy with a devalued currency, which in turn will require the US to either pay higher interst rates to borrow money, or print money, both of which should cause the dollar to fall further still, and so on and so forth???