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To: Mike M2 who wrote (8757)11/20/1997 8:25:00 PM
From: Bonnie Bear  Read Replies (1) | Respond to of 18056
 
I think this implies that Japan will be dumping treasuries and bartering for goods. (comments, anyone?) I can't see why they will buy gold when they need the money.
biz.yahoo.com
hmm...url just expired on me, perhaps sometime can post this.



To: Mike M2 who wrote (8757)11/21/1997 8:48:00 AM
From: Tommaso  Read Replies (1) | Respond to of 18056
 
I read the material on Gold Eagle from time to time, but can't help being aware that there is a very strong bias there in hopes of and in favor of anything that would raise the price of gold.

I don't see how printing money (if you mean increasing the supply of yen) could depress the prices of U. S. Treasury bonds. If the U.S. inflates the money supply and interest rates go up in anticipation or accompanyin inflation, then bond prices would go down. Maybe M3 is up a lot, but M2 is still just pushing the limits of the Fed's goals and is not that much out of line.

But I will start watching M3. I am not sure it is even graphed as such on the Federal reserve Bank of St. Louis charts.

stls.frb.org



To: Mike M2 who wrote (8757)11/21/1997 12:44:00 PM
From: yard_man  Respond to of 18056
 
The selling of some treasuries seems plausible if Japanese banks got in worse that dire straits, but isn't there a natural limit to how much they would sell -- selling too many would be akin to shooting oneself in the foot (i.e. we buy a lot of imports). And why should they buy gold necessarily?