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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (122971)	8/2/2009 10:14:33 AM
From: Salt'n'Peppa	Respond to of 206110

"But there is good evidence that the Japanese have been quietly "monetizing" their U.S. bond holdings. How does this work? In a simplified case, a Japanese corporation might earn US$100 earned by selling electronics to Americans. The corporation then uses that money to purchase $100 worth of 30-year U.S. government bonds. Looks good so far. But what happens after that? In some cases, the Japanese government will issue the company $100 worth of yen. This gives Japanese leaders the "best of both worlds". On the one hand, they give the appearance that the country is fiscally disciplined, spending its excess cash on savings instruments like bonds. But on the other, companies get their dollar investments back in yen, which they can then spend in the domestic economy. Saving and spending all in one." CC, if the common man tries to do this exact thing, it is called money laundering and you go to jail for a long, long time. S&P