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To: elmatador who wrote (79159)9/7/2011 12:37:36 PM
From: Maurice Winn1 Recommendation  Read Replies (1) | Respond to of 217783
 
ElM, Japan didn't "hog capital". They shipped it to NZ so that house "owners" with large amounts of borrowed uridashi could revalue their houses up and up and up and use the 'capital gains' to have holidays in Europe, Rarotonga, Disneyland, lunch at cafes and become coffee snobs. Japan also shipped huge amounts of capital to the USA so that Americans could do the same. NZ and USA needed lots of capital. Now the USA needs it by the $trillion. Greece, Spain, Italy, Portugal need more capital too.

But spreading capital to those places does not achieve anything more than giving another "fix" until withdrawal symptoms show again.

China too is not "hogging" capital. The USA owes them $trillions having borrowed like crazy to fund the debt habit.

But the whole idea of "hogged" capital is false. If you get paid and just hide the money in a bank account in Curitiba, it doesn't sit there unhogged. The bank lends it to somebody. That's how banks make profits. They make no money by having it sit there in your account. They do collect some bank charges so they make some. But the big money comes from lending it to somebody else and preferably to somebody using a credit card to borrow money long term.

Mqurice