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

To: Elroy Jetson who wrote (102055)	9/16/2009 3:30:24 PM
From: Broken_Clock	1 Recommendation Respond to of 116555

To: Elroy Jetson who wrote (102055)	9/16/2009 3:39:03 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 116555

You need to learn some economics. You could start with supply and demand. Ok.. so explain why Japan's interest rates for deposits have been so low for the past 15 years? It's not because of excess debt, but excess savings. The supply of available capital is greater than demand for interest paying loans. Supply and demand, pure and simple. Again, saving is good while excessive saving is bad. Stuffing your money in an electronic (or physical) mattress, drawing practically nothing in return, is also bad. What Japan has shown us is that this depositor money will be used to finance even greater governmental borrowing because the private sector is unable to find a more profitable use for it other than engaging in carry trade activities. Hawk